Q1. Alpha Company reported the following financial statement information:

Calculate Alpha’s net income for the year ended December 31, 2007 and the change in stockholders’ equity for the year ended December 31, 2007.

         Net income      Change in stockholders' equity

A)     ($3,000)     $2,000 increase

B)     $5,000         $2,000 decrease

C)     $5,000         $2,000 increase

Q2. Wichita Corporation reported the following balances as of December 31, 2007:

Calculate Wichita’s cash and total assets as of December 31, 2007 based only on these entries.

         Cash        Total assets

A)     $16,000   $129,600

B)     $32,800   $113,600

C)     $32,800   $129,600

Q3. Beta Company reported the following financial statement information:

Calculate Beta’s total assets and stockholders’ equity as of December 31, 2007.

         Total assets     Stockholders' equity

A)     $93,750        $30,000

B)     $79,250        $55,750

C)     $93,750        $55,750

答案和详解如下：

Q1.Correct answer is C)

Stockholders’ equity, as of December 31, 2006, was $25,000 ($70,000 assets – $45,000 liabilities) and stockholders’ equity, as of December 31, 2007, was $27,000 ($82,000 assets – $55,000 liabilities). Stockholders’ equity increased $2,000 during 2007. Net income for 2007 was $5,000 ($27,000 ending equity + $6,000 dividends – $3,000 stockholder investments – $25,000 beginning equity).

Q2. Correct answer is C)

Liabilities plus equity are equal to $129,600 ($16,000 accounts payable + $20,000 notes payable + $19,600 common stock + $42,000 additional paid-in capital + $32,000 retained earnings). Since assets must equal liabilities plus equity, cash must equal $32,800 ($129,600 total assets – $58,000 accounts receivable – $12,000 inventory – $26,800 plant and equipment).

Q3. Correct answer is C)

Stockholders’ equity, as of December 31, 2006, was $30,000 ($58,000 assets – $28,000 liabilities) and stockholders’ equity, as of December 31, 2007, was $55,750 ($30,000 beginning equity + $15,500 stockholder investments + $18,000 net income – $7,750 dividends). Total assets, as of December 31, 2007, are $93,750 ($38,000 liabilities + $55,570 stockholders’ equity).

thanks

多谢

ll

OKOKOK

thanks