Accounting

Please refer to Table 3-1 (Jones Company) for questions 11 & 12.

Table 3-1: Jones Company

Financial Information

  December 2009 December 2010
     
Net Income $2,000 $4,000
Accounts receivable 750 950
Accumulated depreciation 1,000 1,500
Common stock 4,500 5000
Paid-in capital 7,500 8500
Retained earnings 1,500 3,500
Accounts payable 750 750

 

 

11) Based on the information in Table 3-1, calculate the amount of dividends paid by Jones Company in 2010 (no assets were disposed of during the year, and there was no change in interest payable or taxes payable).

A) $2,500

B) $2,000

C) $3,500

D) $4,000

 

 

12) Based on the information in Table 3-1, assuming that no assets were disposed of during 2010, the amount of depreciation expense was

A) $500.

B) $375.

C) $2,500.

D) $3,500.

Solution:

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