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