Question

1. The accountant for the Times Corporation prepared the following list from the company's accounting records for the year ended December 31, 2012 $ Retained earnings Cash X Accounts payable Sales revenue Cost of sales Landr Notes payable Inventory ? Prepaid expenses $ 97,000 Common stock 70,000 VAccounts receivable 1,075,000 Interest income 780,000 VSalary expense 810,000 Income tax expenser 520,000 VSelling expenser 280,000 Salaries payabler 70,000 500,000 260,000 70,000 220,000 60,000 75,000 55,000 Determine the following amounts for Times Corporation. A) Total assets at the end of 2012. 15/7,000 Total liabilities at the end of 2012. B) Total equity at the end of 2012. D) Total revenues for 2012. E) F) ANS: Total expenses for 2012. - Net income for 2012. = 10,000

Answer 1

Ans. A	Particulars	Amount
	Current assets:
	Cash	$97,000
	Accounts receivables	$260,000
	Inventory	$280,000
	Prepaid expenses	$70,000
	Total current assets (a)	$707,000
	Non current assets :
	Land	$810,000
	Total non current assets (b)	$810,000
	Total Assets   (a + b)	$1,517,000
Ans. B	Particulars	Amount
	Accounts payable	$70,000
	Notes payable	$520,000
	Salaries payable	$55,000
	Total Liabilities	$645,000
Ans. C	Particulars	Amount
	Total Assets	$1,517,000
	Less: Total Liabilities	-$645,000
	Total equity	$872,000
Ans. D	Particulars	Amount
	Sales revenue	$1,075,000
	Interest income	$70,000
	Total revenues	$1,145,000
Ans. E	Particulars	Amount
	Cost of sales	$780,000
	Salary expense	$220,000
	Income tax expense	$60,000
	Selling expense	$75,000
	Total expenses (b)	$1,135,000
Ans. F	Particulars	Amount
	Total revenues	$1,145,000
	Less: Total expenses	-$1,135,000
	Net income	$10,000