Harrison contracsed to provide 12 monthe of legal for the ye

Harrison contracsed to provide 12 monthe of legal for the year ending Deccsb 31,0177 $13,000 Which financial siatement orts the results of a busincsss operations? B, statement of changes in equity c: balance sh flows 31, The following accounts and balances were drawn from the records of Rayburn Company on 2016: ecconsts Reveiv Aco Payable 8. Total assets on the December 31, 2016 balance sheet amounted to A. $2,65o B. $3,450. C SI,8O0. D. $3,150. 9. The amount of net income shown on the December 31, 2016 income statement would amount to A. $550. B. $800. ?.sso. D. $250. 10. The accounting equation may be written, A. Revenues-Expenses Net Income B. Assets Liabilities C. Liabilities Equity D. Assets -Claims

Solution

Q6. Answer is B. $ 12000 Explanation: Service revenue unearned on Sep1 36000 Expired period till dec31 4 Revenue to be recognized 12000 (36000*4/12) Q7. Answer is A. Income Statement Q8 Answr is A. $ 2650 Explanation: Cash 1000 Accounts receivable 850 Land 800 Total assets 2650 Q9. Answer is D. $ 250 Explntion: Revenue 800 Less: expense 550 Net income 250 Q10. Answer is A. Revenue -Expense = Income