Question

Use the following information to answer questions 13 - 15 inclusive. The income statement of Delaney Company for the year 2018 included the following items: Interest revenue Salaries expense Insurance expense $40,500 73,200 4,400 The following balances have been taken from Delaney Company's balance sheet: Dec. 31/2018 $10,400 8,500 900 Dec. 31/2017 $9,200 7,600 1,100 . Accrued interest receivable Accrued salaries payable Prepaid insurance 13. The cash received as interest revenue during 2018 was a. $39,300 b. $41,700 c. $40,700 d. $39,000 14. The cash paid for salaries during 2018 was 2000 $74,100 6. $72,300 c. $73,700 d. $73,900 15. The cash paid for insurance premiums during 2018 was a. $3,400 b. $3,800 c. $4,000 d. $4,200

Hi there, can you please answer questions 13-18. they are all very short questions :) Also, the circled answer may or may not be correct and please disregard the blue scribble marks

Answer 1

13 Interest receivable account: Beginning balance Add: Interest revenue 9,200 40500 49,700 - 10400 39,300 Less: Ending balance Cash received as interest revenue during 2018 Answer: a. $39,300 14 Salaries payable account: Beginning balance Add: Salaries expense 7,600 73200 80,800 -8500 Less: Ending balance Cash paid for salaries during 2018 72,300 Answer: b. 72,300 15 Prepaid insurance account: Beginning balance Add: Insurance expense 1,100 -4400 -3,300 -9001 Less: Ending balance Cash paid for insurance premiums during 2018 -4,200 Answer: d. $4,200

16 Current assets = Cash + Inventories = 250,000+50,000 = 300,000 Current liabilities = Accounts payable = 150,000 Working capital = Current assets - Current liabilities = 300,000 - 150,000 = 150,000 Answer: c. $150,000 17 Answer: b. Assets will be overstated and income will be overstated. 18 Dividend paid Sales Dep. Exp Interest earned Administrative expense Selling expense Beginnning retained earnings Ending retained earnings