Question

Greenberry Inc.'s trial balance follows. E (Click the icon to view the trial balance.) Compute these amounts for Greenberry: 1. Total assets 2. Total liabilities 3. Net income or loss during November 4. Total shareholders' equity 1. Total assets 2. Total liabilities 3. Net income 4. Total shareholders' equity

Answer 1

Solution

Total assets	$ 100,500
Total liabilities	$    43,000
Net income	$    36,500
Total shareholder's equity	$    57,500

Working

Cash	$      7,000
Accounts receivable	$    15,000
Supplies	$      2,500
Equipment	$    26,000
Land	$    50,000
Total assets	$ 100,500
Accounts payable	$    15,000
Note payable	$    28,000
Total liabilities	$    43,000
Service revenue	$    67,400
Less: Salary expense	$ (18,000)
Less: Rent expense	$ (11,500)
Less: Interest expense	$    (1,400)
Net income	$    36,500
Retained earnings	$      6,000
Add: Net income	$    36,500
Add: Share capital	$    15,000
Total shareholder's equity	$    57,500