For Year 2, the Sacramento Corporation had beginning and ending Retained Earnings balances of $208,054 and $231,012, respectively. Also during Year 2, the board of directors declared cash dividends of $29,000, which were paid during Year 2. The board also declared a stock dividend, which was issued and required a transfer in the amount of $16,000 to paid-in capital. Total expenses during Year 2 were $32,916. Based on this information, what was the amount of total revenue for Year 2?

Which of the following is not a common internal control procedure that would be implemented with regards to cash receipts?

At the end of the accounting period, Houston Company had $7,000 of common stock, paid-in capital in excess of par value–common of $8,800, retained earnings of $7,500, and $4,750 of treasury stock. What is the total amount of stockholders’ equity?

On January 1, Year 1, Barnes Company issued a $108,500 installment note. The note had a 10-year term and an 8 percent interest rate. Barnes agreed to repay the principal and interest in 10 annual payments of $16,170 at the end of each year. Which of the following shows how the first payment on December 31, Year 1 will affect Barnes financial statements? (Note: all amounts shown in the model are rounded to the nearest whole dollar.) Balance SheetIncome StatementStatement of Cash Flows Assets=Liabilities+Stockholders’ EquityRevenues−Expenses=Net IncomeA.(16,170)=(7,490)+(8,680) −8,680=(8,680)(8,680) FA (7,490) OAB.(16,170)=(7,490)+(8,680) −8,680=(8,680)(8,680) OA (7,490) FAC.(16,170)=(8,680)+(7,490) −(7,490)=(7,490)(8,680) FA (7,490) OAD.(16,170)=(8,680)+(7,490) −(7,490)=(7,490)(8,680) OA (7,490) FA

Chico Company borrowed $40,000 on a four-year, 8% installment note. How will this transaction affect Chico’s financial statements?

Which of the following would not likely appear in the current liabilities section of a classified balance sheet?

On November 1, Year 1, Dixon Company paid $20 per share to buy back 2,400 shares of its $8 par value common stock. The stock had originally sold for $15. On December 15, Year 1, Dixon sold 540 shares of the treasury stock at $38 per share. Which of the following shows how the sale of the treasury stock will affect Dixon’s financial statements on December 15, Year 1?

On January 1, Year 1, Parker Company purchased an asset costing $20,000. The asset had an expected five-year life and a $2,000 salvage value. The company uses the straight-line method. What are the amounts of depreciation expense and accumulated depreciation, respectively, that will be reported in the Year 2 financial statements?

On January 1, Year 1, Friedman Company purchased a truck that cost $48,000. The truck had an expected useful life of 8 years and an $8,000 salvage value. Friedman uses the double-declining-balance method. What is the book value of the truck at the end of Year 1?

How does the amortization of the principal balance on an installment note payable affect the amount of interest expense recorded each succeeding year?