Homework SoursePlease answer the following questions with the table givenSo
Please answer the following questions with the table given
Solution
Correct answer for question 6 ----Option d) $116000.00
Calculations
Total Liabilities
Unearned Service Revenue
$ 10,000.00
Accounts Payable
$ 56,000.00
Notes Payable
$ 50,000.00
Total Liabilities
$ 116,000.00
Correct Answer for question 7----Option C) $89000.00
Calculation
Retained Earnings
Opening Balance of Retained Earnings
$ 20,000.00
Add: Income during year*
$ 105,000.00
Less: Dividends paid
$ (36,000.00)
Closing Retained earnings
$ 89,000.00
Income Statement
Service revenue
$ 195,000.00
Operating expenses
Salary expense
$ 52,000.00
Insurance Expense
$ 9,000.00
Utilities Expense
$ 19,000.00
Depreciation Expense
$ 10,000.00
Total Operating Expenses
$ 90,000.00
Net Income
$ 105,000.00
| Total Liabilities | |
| Unearned Service Revenue | $ 10,000.00 |
| Accounts Payable | $ 56,000.00 |
| Notes Payable | $ 50,000.00 |
| Total Liabilities | $ 116,000.00 |
