Question

liabilities USE THE FOLLOWING INFORMATION FOR QUESTIONS 80-84: David Bash's Landscaping Company has come the following list of account balances of various assets revenues and expenses on December 31, 2016. the end of its first year of operations Common stock Accounts payable Salary expense Repairs expense Dividends Truck Equipment Notes payable Cash Supplies expense Service revenue Gasoline expense 50.400 10.000 18.000 3.200 20,000 34.000 25,200 32,800 70,400 6,400 87,200 3.200 4. The net income for David Bash's Landscaping for the year was: 6. The total assets for David Bash's Landscaping on December 31, 2016 are: Chapter 2 6. The accounting equation for Sock Monkey Company is as follows: Assets $480,000 Liabilities $240,000 Stockholders' Equity $240.000 If the company now issues stock for $60,000, the accounting equation will change to Assets A) $480,000 B) $540,000 C) $480,000 D) $540,000 = = = = Liabilities $180,000 $300,000 $300,000 $240,000 + + + + Stockholders' Equity $300,000 $240,000 $180,000 $300,000

Answer 1

David Bash

Net Income = Service Revenue - Salary Expense - Repairs Expense - Supplies Expense - Gasoline Expense

                 = 87200 - 18000 - 3200 - 6400 - 3200 = 56400

Total Assets = Truck + Equipment + Cash = 34000 + 25200 + 70400 = 129600

Sock Monkey Company

Entry for New Stock:

Cash a/c                 Dr. 60000

         To Common Stock        60000

Accounting Equation:

D) Assets = Liabilities + Stockholders Equity ; $540000 = $240000 + $300000