May 1 B. D. Mehta invests $ 3,054 cash in exchange for common stock of Mehta Company, a small welding corporation. 3 Buys equipment on account for $ 1,547. Question 2 On July 1, 2012, Crowe Co. pays $ 19,796 to Zubin Insurance Co. for a 3-year insurance contract. Both companies have fiscal years ending December 31. For Crowe Co. Question 3 Dresser Company ' s weekly payroll, paid on Fridays, totals $ 12,000. Employees work a 5-day week. Prepare Dresser ' s adjusting entry on Wednesday, December 31, and the Question 4 Side Kicks has year-end account balances of Sales $ 876,990; Interest Revenue $ 17,650; Cost of Goods Sold $ 577,500; Operating Expenses $ 200,240; Income Tax Expense Question 5 Financial information exhibits the characteristic of consistency when: Question 6 What is the relationship between the Securities and Exchange Commission and accounting standard setting in the United States? Question 7 Starr Co. had sales revenue of $ 609,500 in 2012. Other items recorded during the year were: Cost of goods sold $ 326,100 Wage expense 125,100 Income tax expense 28,000 Question 8 Portman Corporation has retained earnings of $ 688,540 at January 1, 2012. Net income during 2012 was $ 1,749,750, and cash dividends declared and paid during 2012 totaled Question 9 On January 1, 2012, Richards Inc. had cash and common stock of $ 63,640. At that date the company had no other asset, liability or equity balances. On January 2, 2012, it purchased for cash $ 24,740 of equity securities that it classified as available-for-sale. It received cash dividends of $ 3,300 net of tax during the year on these securities. In