ACG 3173 Exam 1 And Exam 2
Questions and All Correct Answers
2025-2026 Updated.
The equity of Lime Company is $180,000 and the total liabilities are $80,000.
The total assets are ________. - Answer Assets = Liabilities + Equity
= 180,000 + 80,000
= 260,000
Grapefruit Services started the year with total assets of $90,000 and total liabilities of $40,000.
The company is a sole proprietorship. The revenues and the expenses for the year amounted to
$130,000 and $50,000, respectively. During the year, there were no new capital contributions
and the owner withdrew $40,000.
What is the amount of owner's equity at the end of the year? - Answer Owner, Capital,
Ending Balance = Owner, Capital (Beg. Balance) - Owner, Withdrawals + Revenues - Expenses
= (90000 - 40000) - 40000 + 130000 - 50000
= 90,000
The following transactions for the month of March have been journalized and posted to the
proper accounts of a sole proprietorship.
Mar. 1 - The business received $10,000 cash from the owner of the business, Lemon. The
business gave capital to Lemon.
Mar. 2 - Paid the first month's rent of $800.
Mar. 3 - Purchased equipment by paying $2500 cash and executing a note payable for $7000.
Mar. 4 - Purchased office supplies for $700 cash.
Mar. 5 - Billed a client for $10,000 of design services completed.
Mar. 6 - Received $7500 on account for the services previously recorded.
,What is the balance in Cash on March 6? - Answer Cash is increased by the March 1
transaction of $10,000 and the March 6 amount of $7500 and decreased by the March 2
payment of $800, March 3 payment of $2500, and March 4 payment of $700 for a final cash
balance of $13,500.
Peach Corp. is preparing its statement of cash flows using the indirect method. It provides the
following information about transactions for the year:
Plant assets, net—beginning balance: $108,000
Plant assets, net—ending balance: $146,000
Equipment was purchased for $67,000 with cash.
Equipment with a net asset value of $12,000 was sold for $20,000.
Depreciation Expense of $14,400 was recorded during the year.
What was the amount of net cash provided by (used for) investing activities? - Answer
67,000 - 20,000
= 47,000
Orange Corp. uses the indirect method to prepare its statement of cash flows. Refer to the
following information for the year:
1. Long-Term Notes Payable, beginning balance, $81,000
2. Long-Term Notes Payable, ending balance, $75,000
3. Common Stock, beginning balance, $3600
4. Common Stock, ending balance, $27,000
5. Retained Earnings, beginning balance, $78,000
6. Retained Earnings, ending balance, $119,000
7. Treasury Stock, beginning balance, $6000
8. Treasury Stock, ending balance, $10,100
9. No stock was retired
.10. No treasury stock was sold.
11. During the year, the company repaid $38,000 of long-term notes payable.
12. During the year, the company borrowed $32,000 on new long-term notes payable.
13. Net income for the year was $51,000
.14. Assume all dividends declared during the year were paid.
, What is the net cash provided by financing activities? - Answer Long-term Notes Payable
repaid: (38,000)
Long-term Notes Payable borrowed: 32,000
Issued Common Stock: 23,400
Dividends paid: ($78,000 + $51,000 - $119,000) (10,000)
Purchased Treasury Stock: (4100)
Net Cash from Financing Activities: $3300
The following Office Supplies account information is available for Avocado Company.
Beginning balance: $2000
Office Supplies expensed: 8000
Ending balance: 1000
From the above information, calculate the amount of office supplies purchased. - Answer
Ending balance: 1000
Add: Office Supplies expensed: 8000
= 9000
Less: beginning balance - 2000
= 9000 - 2000
= $7000
Big Apple Company sells tickets in advance for its weekly productions and records the proceeds
as Unearned Revenue. At the end of each month, the company makes an adjusting entry to
account for the tickets used during the month (ticket revenue.) On March 1, the Unearned
Revenue account had a credit balance of $5000. During March, Big Apple sold 600 tickets at $20
each, and 550 tickets were used during the month.
What is the balance in Unearned Revenue at the end of March? - Answer Unearned
Revenue: 5000
Add value of tickets unused on March 31
600 - 550 = 50 tickets × $20 per ticket: 1000
= 5000 + 1000
credit balance of $6000
Questions and All Correct Answers
2025-2026 Updated.
The equity of Lime Company is $180,000 and the total liabilities are $80,000.
The total assets are ________. - Answer Assets = Liabilities + Equity
= 180,000 + 80,000
= 260,000
Grapefruit Services started the year with total assets of $90,000 and total liabilities of $40,000.
The company is a sole proprietorship. The revenues and the expenses for the year amounted to
$130,000 and $50,000, respectively. During the year, there were no new capital contributions
and the owner withdrew $40,000.
What is the amount of owner's equity at the end of the year? - Answer Owner, Capital,
Ending Balance = Owner, Capital (Beg. Balance) - Owner, Withdrawals + Revenues - Expenses
= (90000 - 40000) - 40000 + 130000 - 50000
= 90,000
The following transactions for the month of March have been journalized and posted to the
proper accounts of a sole proprietorship.
Mar. 1 - The business received $10,000 cash from the owner of the business, Lemon. The
business gave capital to Lemon.
Mar. 2 - Paid the first month's rent of $800.
Mar. 3 - Purchased equipment by paying $2500 cash and executing a note payable for $7000.
Mar. 4 - Purchased office supplies for $700 cash.
Mar. 5 - Billed a client for $10,000 of design services completed.
Mar. 6 - Received $7500 on account for the services previously recorded.
,What is the balance in Cash on March 6? - Answer Cash is increased by the March 1
transaction of $10,000 and the March 6 amount of $7500 and decreased by the March 2
payment of $800, March 3 payment of $2500, and March 4 payment of $700 for a final cash
balance of $13,500.
Peach Corp. is preparing its statement of cash flows using the indirect method. It provides the
following information about transactions for the year:
Plant assets, net—beginning balance: $108,000
Plant assets, net—ending balance: $146,000
Equipment was purchased for $67,000 with cash.
Equipment with a net asset value of $12,000 was sold for $20,000.
Depreciation Expense of $14,400 was recorded during the year.
What was the amount of net cash provided by (used for) investing activities? - Answer
67,000 - 20,000
= 47,000
Orange Corp. uses the indirect method to prepare its statement of cash flows. Refer to the
following information for the year:
1. Long-Term Notes Payable, beginning balance, $81,000
2. Long-Term Notes Payable, ending balance, $75,000
3. Common Stock, beginning balance, $3600
4. Common Stock, ending balance, $27,000
5. Retained Earnings, beginning balance, $78,000
6. Retained Earnings, ending balance, $119,000
7. Treasury Stock, beginning balance, $6000
8. Treasury Stock, ending balance, $10,100
9. No stock was retired
.10. No treasury stock was sold.
11. During the year, the company repaid $38,000 of long-term notes payable.
12. During the year, the company borrowed $32,000 on new long-term notes payable.
13. Net income for the year was $51,000
.14. Assume all dividends declared during the year were paid.
, What is the net cash provided by financing activities? - Answer Long-term Notes Payable
repaid: (38,000)
Long-term Notes Payable borrowed: 32,000
Issued Common Stock: 23,400
Dividends paid: ($78,000 + $51,000 - $119,000) (10,000)
Purchased Treasury Stock: (4100)
Net Cash from Financing Activities: $3300
The following Office Supplies account information is available for Avocado Company.
Beginning balance: $2000
Office Supplies expensed: 8000
Ending balance: 1000
From the above information, calculate the amount of office supplies purchased. - Answer
Ending balance: 1000
Add: Office Supplies expensed: 8000
= 9000
Less: beginning balance - 2000
= 9000 - 2000
= $7000
Big Apple Company sells tickets in advance for its weekly productions and records the proceeds
as Unearned Revenue. At the end of each month, the company makes an adjusting entry to
account for the tickets used during the month (ticket revenue.) On March 1, the Unearned
Revenue account had a credit balance of $5000. During March, Big Apple sold 600 tickets at $20
each, and 550 tickets were used during the month.
What is the balance in Unearned Revenue at the end of March? - Answer Unearned
Revenue: 5000
Add value of tickets unused on March 31
600 - 550 = 50 tickets × $20 per ticket: 1000
= 5000 + 1000
credit balance of $6000
