4.

The balances of select accounts of Sandra Company as of December 31, 2018

are given below:
Debit Credit
Building $140,000
Cash 9,000
Office Supplies 1,200
Furniture 6,000
Prepaid Insurance 550
Accumulated Depreciation—Furniture $4,000
Land 31,000
Accumulated Depreciation—Building 4,000
Accounts Receivable 2,200

The insurance has been prepaid until June 30, 2019. Determine the amount of total
current assets reported on the balance sheet at December 31, 2018.

$17,200
$10,200
$12,950
$10,750

5. The net income of Hendley Company for the year is $25,000. Withdrawals during
the year were $30,000. No new capital contributions were made during the year.
Which of the following statements is TRUE?

Hendley, Capital account decreases by $25,000.

Hendley, Capital account decreases by $5,000.
Hendley, Capital account increases by $30,000.
Hendley, Capital will remain the same.
9. Your business advisor, a consulting company, uses reversing entries. On March
31, 2018, the bookkeeper journalized and posted the following adjusting entry to
accrue Utilities Expense:

Utilities Expense 100

Utilities Payable 100

Which of the following entries is the correct reversing entry to be prepared

on April 1, 2018?
Utilities Payable 100
Utilities Expense 100
Utilities Expense 100
Income Summary 100

Cash 100
Utilities Expense 100
Utilities Expense 100
Accounts Receivable 100

10. A company has $120,000 in current assets; $550,000 in total assets; $90,000 in
current liabilities, and $110,000 in total liabilities. Calculate the current ratio of the
company. (Round your answer to two decimal places.)

1.33
1.72
1.75
1.09
15. Refer to the following adjusted trial balance.

Accounts Debit Credit

Cash $1,700
Accounts Receivable 8,600
Office Supplies 400
Equipment 28,100
Accumulated Depreciation — Equipment $2,000
Accounts Payable 1,200
Salaries Payable 950
Unearned Revenue 450
Smith, Capital 3,800
Smith, Withdrawals 1,000
Service Revenue 55,600
Salaries Expense 20,000
Supplies Expense 2,200
Depreciation Expense — Equipment 2,000
Total $64,000 $64,000

There were no new capital contributions during the year. What will the
balance of the Smith, Capital account be after the closing entries are
posted?

$34,200
$31,400
$35,200
$32,400

18. Brownstone Company has a current ratio of 4.00. This indicates that the
company has $4 in __________.

current liabilities for every $1 of current assets

total assets for every $1 of current liabilities
current assets for every $1 of current liabilities
total assets for every $1 of current assets