Question

10. Mirr Corporation was incorporated on January 1, 2019, with proceeds from the 15$ $750,000 in common shares and borrowed funds imon shares and borrowed funds of $110.000. During the first year of evenues from sales and consulting amounted to $82,000, and operating costs and expenses totaled $64,000. On December 15. Mirr declared a $3,000 cash dividend, payable to Son January, 2020. No additional activities affected owners' equity in 2019. Mirr's nabilities increased to $120,000 by December 31, 2019. On December 31, 2019 balance sheet, total assets should be reported at: a. $885,000 b. $882,000 c. $878,000 d. $875,000 3 11. What effect does an accrued revenue adjustment have on a company's net income? a) The adjustment increases net income for the period. b. The adjustment decreases net income for the period. c. The adjustment has no effect on net income. d. The effect of the adjustment cannot be determined with the information given. 12. The balance in all asset accounts combined is $100,000 on December 1st. During December, the following transactions took place: Purchase of $10,000 of inventory for cash Purchase of machinery on account for $15,000 Paid back loan with bank $20,000 with cash 000 What is the combined December 31 balance in the asset accounts? a. $95,000 b. $115,000 c. $105,000 d. $80,000 003

Hi there, can you please answer questions 10-12. Also, the circled answer may or may not be correct and please disregard the blue scribble marks

Answer 1

Answer 10 : c. $885000

Calculated as

Total assets = Total liabilities + shareholders equity = Common stock + iliabilities + (revenue-expense-dividend) + dividend payable

= $750000+120000+(82000-64000-3000)

= $885000

Answer 11 a. The adjustment increases the net income for the period

as

Recording accrued revenue increase revenue and hence increase the net income for the period

Answer 12 : a) $95000

calculated as

New combined assets= Beginning combined assets + increase in machinery - decrease in cash

= 100000+15000-20000

= $95000

purchase of stock for cash will have no effect on combined assets

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