Instructions: Place a check in the appropriate columns to designate whether each of the
following accounts: (1) has a debit or credit normal balance; and (2) is an asset,
liability, or stockholders’ equity account.
Answer:
Accrued revenues are amounts recorded and received but not yet recognized.
Answer:
The stockholders’ equity section of Maria Corporation at December 31, 2014, included
the following:
Dividends were not declared on the preferred stock in 2014 and are in arrears.
On September 15, 2015, the board of directors of Maria Corporation declared dividends
on the preferred stock for 2014 and 2015, to stockholders of record on October 1, 2015,
payable on October 15, 2015.
On November 1, 2015, the board of directors declared a $.50 per share dividend on the
common stock, payable November 30, 2015, to stockholders of record on November
15, 2015.
Instructions
Prepare the journal entries that should be made by Maria Corporation on the dates
indicated below:
Answer:
For external reporting, a company must prepare either an income statement or a
statement of cash flows, but not both.
Answer:
Presented below are balance sheet items for Black Angel Company at December 31,
2015.
Compute each of the following:
1> Total assets.
2> Total liabilities.
Answer: