Question

9.6/2015 Donalty Corporation opened for business on January 1, 2022. The following information is available with regards to their accounts as of December 31, 2022: Accounts payable Accounts receivable Administrative expenses Bank loan Cash Common shares Dividends declared Equipment Insurance expense Interest expense Revenue Salaries expense $2,500 $5,500 $4,500 $55,000 $130,200 $51,000 $1,000 $25,000 $4,800 $4,000 $145,000 $78,500 The following information was also available for the year: Net cash used by operating activities was $50,200 Cash of $25,000 was paid to purchase new equipment Cash of $51,000 was received from the issue of common shares Cash of $55,000 was received from the bank loan Cash of $1.000 was declared and paid for dividends.

Answer 1

Correct Statements are e Total Shareholder's Equity for the year is $103,200. c Total Liabilities are $57,500. f Total Assets of the year is $160,700. a Total Net Income for the year is $53,200. Reference Column Statement of Changes in Equity Total Statement of Financial Position Total Liabilities Statement of Financial Position Total Assets Statement of Income Net Income/(loss) Remaining Statements are incorrect h Retained Earnings at the beginning of the year are $52,200. b Total Retained Earnings for December 31, 2020 is $53,200. d The Net cash provided by the financing activity & The net increase in the cash for the year is $132,200 Reference Column Correct Answer Statement of Changes in Equity Balance, Jan 1 2020 $ Statement of Changes in Equity Balance, Jan 1 2021 $ 52,200 Statement of Cash Flows Net Cash by Financing Activity $ 105,000 Statement of Cash Flows Net increase in cash $ 130,200 Note: Please Comment down for any further clarifications.