A:
1. Determine the net income of a company for which the following information is available.
Employee salaries expense................. $180,000
Interest expense.............................. 10,000
Rent expense.................................. 20,000
Consulting revenue.......................... 400,000
2. Compute return on assets given net income of $13,764, beginning assets of $120,000 and ending assets of $176,000.
B: Long question
3. Write a short note on "Going concern concept" and "Full disclosure".
4. Use the accounting equation to analyze the following Transactions:
a) Mr. X invests $30,000 cash to start a new business, X limited, in return for stock.
b) The X limited purchased supplies for $ 2,500 and paid in cash
c) The X limited purchased equipment for $ 26,000 on account
d) The X limited paid $ 200 cash dividends to its owner.