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Question 1 Charles Fox has been operating the Fox Limousine Service for the past six years. Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. Based on the unadjusted trial balance, determine the Fox Limousine Service's net income (loss) for March. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Wages Expense Telephone Expense Income Taxes Expense Totals Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 $0 $1,450 $0 $2,575 $90 ________$0 $12,950 __________ $12,950 a. $2,060 b. $635 c. $4,115 d. $4,750 e. $360 Based on the unadjusted trial balance, determine Fox Limousine Service's total assets on March 31. Question 2 Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $0 $1,450 $0 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 ___________ $12,950 Totals a. $12,950 b. $2,500 c. $6,060 d. $8,560 e. $5,560 Question 3 $12,950 Based on the unadjusted trial balance, determine Fox Limousine Service's total liabilities on March 31. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 Totals $12,950 a. $2,500 b. $12,950 c. $900 d. $8,560 e. $6,500 Question 4 ___________ $12,950 Based on the unadjusted trial balance, determine Fox Limousine Service's total stockholders' equity on March 31. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Debits Credits $5,560 $1,100 $600 $0 $1,300 $900 $0 $0 $1,600 Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 Totals $12,950 a. $2,500 b. $4,000 c. $6,060 d. $12,950 e. $5,700 Question 5 $4,000 $1,700 $4,750 ___________ $12,950 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By addition and subtraction, show the effects of the following information on Fox Limousine Service's resources and sources of resources. An examination of the supplies revealed that only $425 of supplies were on hand on March 31. $175 of supplies had been used up in March. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Debits $5,560 $1,100 Credits Supplies $600 Prepaid Insurance $0 Prepaid Rent $1,300 Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 Totals Assets A) +$175&- $175 B) + $425 C) + $425 D) - $175 E) - $175 $12,950 Liabilities + $425 - $175 ___________ $12,950 Resources Sources of Borrowed Resources Sources of Owner Invested Resources Sources of Management Generated Resources Stockholders’ Equity + $425 - $175 a. A) b. B) c. C) d. D) e. E) Question 6 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By addition and subtraction, show the effects of the following information on Fox Limousine Service's resources and sources of resources. The prepaid rent represents $650 Fox Limousine Service paid to Chishti Auto Rental to rent a limousine for Fox Limousine Service to use in providing services to Fox's clients in March and $650 to rent it for April. $650 of the prepaid rent had been used up by the end of March. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Debits $5,560 $1,100 $600 $0 $1,300 Credits $900 $0 $0 $1,600 $4,000 $1,700 Dividends $275 Fees Revenue Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 $4,750 Totals $12,950 ___________ $12,950 Resources Sources of Borrowed Resources Sources of Owner Invested Resources Sources of Management Generated Resources Assets A) +$650&- $650 B) + $650 C) - $1,300 D) - $650 E) + $650 a. A) b. B) c. C) d. D) e. E) Liabilities + $650 Stockholders’ Equity - $1,300 - $650 + $650 Question 7 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By addition and subtraction, show the effects of the following information on Fox Limousine Service's resources and sources of resources. $850 of insurance had not been used up by March 31. $600 of insurance had been used up in March. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Wages Expense Telephone Expense Income Taxes Expense Totals Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 $0 $1,450 $0 $2,575 $90 ________$0 $12,950 ___________ $12,950 Resources Sources of Borrowed Resources Sources of Owner Invested Resources Sources of Management Generated Resources Assets A) B) + $850 C) +$850&- $850 D) - $600 E) - $850 a. A) b. B) c. C) d. D) e. E) Question 8 Liabilities + $600 Stockholders’ Equity - $600 + $850 - $600 - $850 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By addition and subtraction, show the effects of the following information on Fox Limousine Service's resources and sources of resources. By March 31, $740 of services had been provided to clients who had paid $1,600 in advance (unearned fees). At the end of March, $860 of services were still owed to customers who had paid in advance. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Debits $5,560 $1,100 Credits Supplies $600 Prepaid Insurance $0 Prepaid Rent $1,300 Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 Totals Assets A) - $860 B) C) D) + $860 E) - $740 $12,950 Liabilities - $860 + $860 - $740 + $860 - $740 ___________ $12,950 Resources Sources of Borrowed Resources Sources of Owner Invested Resources Sources of Management Generated Resources Stockholders’ Equity - $860 + $740 a. A) b. B) c. C) d. D) e. E) Question 9 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By addition and subtraction, show the effects of the following information on Fox Limousine Service's resources and sources of resources. Wages earned by employees but unpaid to them as of March 31 were $325. $2,900 of total wages had been earned by employees in March. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $0 $1,450 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 ___________ Totals $12,950 $12,950 Resources Sources of Borrowed Resources Sources of Owner Invested Resources Sources of Management Generated Resources Assets A) B) - $325 C) + $325 D) - $2,900 E) a. A) b. B) c. C) d. D) e. E) Liabilities + $325 + $325 + $2,900 Stockholders’ Equity - $325 - $325 - $2,900 - $2,900 Question 10 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By addition and subtraction, show the effects of the following information on Fox Limousine Service's resources and sources of resources. Federal income taxes for March were estimated to be $375. Taxes will be paid in April. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Wages Expense Telephone Expense Income Taxes Expense Totals Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 $0 $1,450 $0 $2,575 $90 ________$0 $12,950 ___________ $12,950 Resources Sources of Borrowed Resources Sources of Owner Invested Resources Sources of Management Generated Resources Assets A) - $375 B) + $375 C) - $375 D) E) a. A) b. B) c. C) d. D) e. E) Question 11 Liabilities + $375 - $375 + $375 Stockholders’ Equity - $375 - $375 + $375 - $375 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. An examination of the supplies revealed that only $425 of supplies were on hand on March 31. $175 of supplies had been used up in March. Prepare the adjusting entry required to account for this information. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Debits Credits $5,560 $1,100 $600 $0 $1,300 $900 Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 Totals $12,950 A) Supplies Expense Supplies B) Supplies Cash C) Supplies Accounts Payable D) Supplies Supplies Expense E) Supplies Expense Supplies $0 $0 $1,600 $4,000 $1,700 $4,750 ___________ $12,950 $175 $175 $425 $425 $425 $425 $175 $175 $425 $425 a. A) b. B) c. C) d. D) e. E) Question 12 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. The prepaid rent represents $650 Fox Limousine Service paid to Chishti Auto Rental to rent a limousine for Fox Limousine Service to use in providing services to Fox's clients in March and $650 to rent it for April. $650 of the prepaid rent had been used up by the end of March. Prepare the adjusting entry required to account for this information. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 Totals $12,950 A) Rent Expense Prepaid Rent B) Rent Expense Cash C) Rent Expense Prepaid Rent D) Prepaid Rent Rent Expense E) Prepaid Rent Rent Expense a. A) b. B) c. C) d. D) e. E) ___________ $12,950 $1,300 $1,300 $650 $650 $650 $650 $1,300 $1,300 $650 $650 Question 13 13. Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. $850 of insurance had not been used up by March 31. $600 of insurance had been used up in March. Prepare the adjusting entry required to account for this information. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Wages Expense Telephone Expense Income Taxes Expense Totals Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 $0 $1,450 $0 $2,575 $90 ________$0 $12,950 ___________ $12,950 A) Prepaid Insurance Insurance Expense B) Insurance Expense Prepaid Insurance C) Prepaid Insurance Cash D) Insurance Expense Prepaid Insurance E) Prepaid Insurance Insurance Expense a. A) b. B) c. C) d. D) e. E) Question 14 $600 $600 $850 $850 $850 $850 $600 $600 $850 $850 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. By March 31, $740 of services had been provided to clients who had paid $1,600 in advance (unearned fees). At the end of March, $860 of services were still owed to customers who had paid in advance. Prepare the adjusting entry required to account for this information. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Wages Expense Telephone Expense Income Taxes Expense Totals Debits $5,560 $1,100 $600 $0 $1,300 Credits $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 $0 $1,450 $0 $2,575 $90 ________$0 $12,950 ___________ $12,950 A) Fees Revenue Unearned Fees B) Unearned Fees Fees Revenue C) Fees Revenue Unearned Fees D) Unearned Fees Fees Revenue E) Cash Fees Revenue a. A) b. B) c. C) d. D) e. E) Question 15 $740 $740 $740 $740 $860 $860 $860 $860 $740 $740 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. Wages earned by employees but unpaid to them as of March 31 were $325. $2,900 of total wages had been earned by employees in March. Prepare the adjusting entry required to account for this information. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Debits Credits Cash $5,560 Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Insurance Expense Rent Expense Wages Expense Telephone Expense Income Taxes Expense Totals A) Wages Expense Cash B) Wages Payable Wages Expense C) Wages Expense $1,100 $600 $0 $1,300 $275 $900 $0 $0 $1,600 $4,000 $1,700 $4,750 $0 $1,450 $0 $2,575 $90 ________$0 $12,950 ___________ $12,950 $325 $325 $325 $325 $2,900 Wages Payable D) Wages Expense Wages Payable E) Wages Payable Wages Expense a. A) b. B) c. C) d. D) e. E) Question 16 $2,900 $325 $325 $2,900 $2,900 Fox Limousine Service's unadjusted trial balance as of March 31 is shown below. Federal income taxes for March were estimated to be $375. Taxes will be paid in April. Prepare the adjusting entry required to account for this information. Fox Limousine Service Unadjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Debits Credits $5,560 $1,100 $600 $0 $1,300 $900 $0 $0 $1,600 Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $0 Insurance Expense $1,450 Rent Expense $0 Wages Expense $2,575 Telephone Expense $90 Income Taxes Expense ________$0 Totals $12,950 A) Income Taxes Expense Accounts Payable B) Income Taxes Payable Income Taxes Expense C) Income Taxes Expense Income Taxes Payable D) Cash Income Taxes Expense E) Income Taxes Expense Cash $4,000 $1,700 $4,750 ___________ $12,950 $375 $375 $375 $375 $375 $375 $375 $375 $375 $375 a. A) b. B) c. C) d. D) e. E) Question 17 The Fox Limousine Service's March 31 adjusted trial balance is shown below. Based on the adjusted trial balance, determine the Fox Limousine Service's net income (loss) for March. Fox Limousine Service Adjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends Fees Revenue Supplies Expense Debits Credits $5,560 $1,100 $425 $850 $650 $275 $175 $900 $325 $375 $860 $4,000 $1,700 $5,490 Insurance Expense $600 Rent Expense $650 Wages Expense $2,900 Telephone Expense $90 Income Taxes Expense _________$375 Totals $13,650 a. $700 b. $5,490 c. $425 d. $4,790 e. $2,125 Question 18 ____________ $13,650 Based on the adjusted trial balance, determine Fox Limousine Service's total assets on March 31. Fox Limousine Service Adjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Debits Credits $5,560 $1,100 $425 $850 $650 $900 $325 $375 $860 $4,000 Retained Earnings Dividends $275 Fees Revenue Supplies Expense $175 Insurance Expense $600 Rent Expense $650 Wages Expense $2,900 Telephone Expense $90 Income Taxes Expense _________$375 Totals $13,650 a. $2,460 b. $5,560 c. $13,650 d. $6,125 e. $8,585 Question 19 $1,700 $5,490 ____________ $13,650 Based on the adjusted trial balance, determine Fox Limousine Service's total liabilities on March 31. Fox Limousine Service Adjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Accounts Payable Wages Payable Debits Credits $5,560 $1,100 $425 $850 $650 $900 $325 Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $175 Insurance Expense $600 Rent Expense $650 Wages Expense $2,900 Telephone Expense $90 Income Taxes Expense _________$375 Totals $13,650 a. $13,650 b. $900 c. $1,225 d. $2,460 e. $1,600 Question 20 $375 $860 $4,000 $1,700 $5,490 ____________ $13,650 Based on the adjusted trial balance, determine Fox Limousine Service's total stockholders’ equity on March 31. Fox Limousine Service Adjusted Trial Balance March 31 Account Name Cash Accounts Receivable Supplies Prepaid Insurance Debits $5,560 $1,100 $425 $850 Credits Prepaid Rent $650 Accounts Payable Wages Payable Income Taxes Payable Unearned Fees Common Stock Retained Earnings Dividends $275 Fees Revenue Supplies Expense $175 Insurance Expense $600 Rent Expense $650 Wages Expense $2,900 Telephone Expense $90 Income Taxes Expense _________$375 Totals a. $8,585 b. $6,125 c. $2,460 d. $5,700 e. $4,000 Question 21 Determine the dollar amount of the Fox Limousine Service’s total resources on March 31. a. $5,560 b. $8,585 c. $2,460 ____________ $13,650 $13,650 $900 $325 $375 $860 $4,000 $1,700 $5,490 d. $6,125 e. $13,650 Question 22 Determine the dollar amount of March 31 resources that the Fox Limousine Service obtained through borrowing. a. $900 b. $13,650 c. $1,600 d. $2,460 e. $1,225 Question 23 Determine the dollar amount of March 31 resources that the Fox Limousine Service obtained from owners. a. $6,125 b. $8,585 c. $4,000 d. $2,125 e. $5,700 Question 24 Determine the net dollar amount of resources that the Fox Limousine Service generated through management operations in March. a. $5,490 b. $4,790 c. $425 d. $2,125 e. $700 Question 25 Determine the dollar amount of March 31 resources that the Fox Limousine Service generated through management operations since the company was formed (not just in March) and kept in the company. a. $2,125 b. $8,585 c. $1,700 d. $6,125 e. $2,460

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