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The following information was extracted from the 2020 financial statements of Max Company:  Income from continuing operations before income tax $705,000 Selling and administrative expenses 480,000 Income from continuing operations 495,000 Gross profit 1,350,000           The amount reported for other expenses and losses is:

Lopez Company received $18,000 on April 1, 2020 for one year’s rent in advance and recorded the transaction with a credit to a nominal account. The December 31, 2020 adjusting entry is:

Compared to the accrual basis of accounting, the cash basis of accounting overstates income by the net increase during the accounting period of the:                                   Accounts Receivable Accrued Expenses Payable a. No No b. No Yes c. Yes No d. Yes Yes

Name letter A.    

Jim Yount, M.D., keeps his accounting records on the cash basis. During 2021, Dr. Yount collected $390,000 from his patients. At December 31, 2020, Dr. Yount had accounts receivable of $40,000. At December 31, 2021, Dr. Yount had accounts receivable of $70,000 and unearned revenue of $10,000. On the accrual basis, how much was Dr. Yount’s patient service revenue for 2021?

Which of the following should be reported as a prior period adjustment?  Change in Estimated Lives of Depreciable Assets Mistakes in the Application of Accounting Principles a. Yes Yes b. No Yes c. Yes No d. No No

Fulton Company owns the following investments: Trading securities (fair value) $160,000 Available-for-sale securities (fair value) 70,000 Held-to-maturity securities (amortized cost)  94,000 Fulton will report investments in its current assets section of:

Moorman Corporation reports the following information: Correction of understatement of depreciation expense              in prior years, net of tax $   1,290,000 Dividends declared 960,000 Net income 3,000,000 Retained earnings, 1/1/20, as reported 6,000,000 Moorman should report retained earnings, 1/1/20, as adjusted at:

The unit of measurement in MSTM coordinate system is Degrees.

Moorman Corporation reports the following information:  Correction of understatement of depreciation expense              in prior years, net of tax $   1,290,000 Dividends declared 960,000 Net income 3,000,000 Retained earnings, 1/1/20, as reported 6,000,000 Moorman should report retained earnings, 12/31/20, at: