Question

1.

Question1 options:

A firm has an ROI of 15%, turnover of 3, and sales of $6 million. Calculate the firm's margin.
Enter your answer as a percentage. For example, if your answer is 9%, then enter in the box
below 9%.

2.

Foreach item below, indicate whether a debit or credit is appropriateby entering the number corresponding to your answer in the boxprovided.

Question2 options:

	adecrease to accounts payable
	anincrease to inventory
	anincrease to cost of goods sold
	adecrease to cash
	anincrease to sales revenue
	anincrease to retained earnings

1.	debit
2.	credit

3.

Question3 options:

Franklin Co. borrowed $40,000 from a bank on September 1, 2007 and agreed to pay it back in
seven months at an interest rate of 15% per year.
Calculate the amount of interest expense related to this loan reported in Franklin Co.'s 2008
income statement. Do not use decimals in your answer.

4.

Question4 options:

ABC Company began operations on August 1, 2013 and entered into the following transactions during 2013:

1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed100,000 from the local bank on a 10-month, 12% note payable

2. On September 1, ABC Company purchased a parcel of land costing $80,000 by paying $20,000 incash and agreeing to pay the remainder within six months

3. On October 1, ABC Company received $50,000 cash from a customer for services to be performedover the next 10 months

4. On November 15, ABC Company paid its stockholders a dividend totaling $3,000 cash

5. On December 1, ABC Company paid $10,000 of the amount owed for the land purchased on September 1

Calculate the amount of net income that ABC Company would report in its 2013 income statement after 
all the above transactions are recorded and all necessary adjusting entries are made. Do not use 
decimals in your answer.

5.

Question5 options:

ABC Company began operations on August 1, 2013 and entered into the following transactions during 2013:

1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed100,000 from the local bank on a 10-month, 12% note payable

2. On September 1, ABC Company purchased a parcel of land costing $80,000 by paying $20,000 incash and agreeing to pay the remainder within six months

3. On October 1, ABC Company received $50,000 cash from a customer for services to be performedover the next 10 months

4. On November 15, ABC Company paid its stockholders a dividend totaling $3,000 cash

5. On December 1, ABC Company paid $10,000 of the amount owed for the land purchased on September 1

Calculate the amount of total assets that ABC Company would report in its December 31, 2013 balance
sheet after all the above transactions are recorded and all necessary adjusting entries are made. 
Do not use decimals in your answer.

6.

Question6 options:

ABC Company began operations on August 1, 2013 and entered into the following transactions during 2013:

1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed100,000 from the local bank on a 10-month, 12% note payable

2. On September 1, ABC Company purchased a parcel of land costing $80,000 by paying $20,000 incash and agreeing to pay the remainder within six months

3. On October 1, ABC Company received $50,000 cash from a customer for services to be performedover the next 10 months

4. On November 15, ABC Company paid its stockholders a dividend totaling $3,000 cash

5. On December 1, ABC Company paid $10,000 of the amount owed for the land purchased on September 1

Calculate the amount of total liabilities that ABC Company would report in its December 31, 2013balance sheet after all the above transactions are recorded and all necessary adjusting entriesare made. Do not use decimals in your answer.

Accounting