1) Problem: Daniels Company reported the following items on its financial statem

1) Problem: Daniels Company reported the following items on its financial statements for the current year:Sales $260000Cost of Goods Sold $ 90000Salary Expense $ 40000Interest Expense $ 17000Dividends $ 20000Income Tax Expense $32000Question 1) What amount will Daniels Report on a single-step income statement for Total Expenses:Possible Answers: a) $158000; b) $179000; c) $210000Question 2) Assume that Total Expenses were $220000. The income statement forDaniels will report Net Income for the current year of how much?Possible Answers: a) $40000; b) $70000; c) $150000_________________________________________________________________________2) A plant operates five days per week with a daily payroll of $4000. Employees are paid every Saturday for the workweek just completed (Monday-Friday). The last day of the month is Wednesday March 31. The correct adjusting entry at March 31 is:Possible Answers:a) debit wages expense $4000 credit wages payable $4000b) debit wages expense $12000 credit cash $12000c) debit wages expense $12000 credit wages payable $12000__________________________________________________________________________3) Woods Corp. began operations on January 2 2004 with an investment of $62000 by each of its two stockholders. Net income for its first year of business was $218000. Woods paid a total of $132000 in dividends to its stockholders during the year. How much is ending retained earnings at December 31 2004?possible answers: a) 86000; b) $124000; c) $280000___________________________________________________________________________4) A company takes out a two-year 10% $150000 note on May 1 2003 with interest and principal to be paid at maturity. How much interest will be reported on the income statement for the year ended December 31 2004?Possible answers: a) $5000; b) $10000; c) $15000____________________________________________________________________________5) Answer this question using the following information:Net Loss $25000Dividends $ 5000December 31 2004 Retained Earnings $50000Question: The January 1 2004 Retained Earnings balance was:Possible Answers: a) $0; b) $70000; c) $80000___________________________________________________________________________6) A company purchased equipment in December 2001 for $64800. The equipment has an estimated useful life of six years and zero salvage value. What amount will appear on the income statement for depreciation expense for the month of March 2004?possible answers: a) $300; b) $900; c) $3600