Question

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QUESTION 26 Elston Company compiled the following financial information as of December 31, 2014: Service revenue $700,000 Common stock 150,000 Machine 350,000 Operating expenses 625,000 Cash 200,000 Dividends 50,000 Supplies 25,000 Accounts payable 100,000 Accounts receivable 75,000 Inventory 80,000 Retained earnings, 1/1/14 375,000 Elston's assets on December 31, 2014 are $650,000 $730,000 OO $625,000 $475,000

Answer 1

Q26.
Answer is $ 730,000
Explanation:
Total Assets:
Cash			2,00,000
Accounts receivable		75,000
Inventory			80,000
Supplies			25,000
Machine			3,50,000
Total Assets:		7,30,000
Q25.
Answer is Net Income of $ 16,000
Explanation:
Net Income (loss)
Sales revenue		69,600
Service revenue		20,000
Total Revenue			89,600
Less: Expense
Cost of goods sold		38,700
Salaries expense		20,000
Utilities expense		14,900
Total Expense			73,600
Net Income			16,000
Q23.
Answer is $ 60000 decrease
Explanation:
Assets increased by increase in liabilities	35,000
Assets decrease by decrease in equity	-95000
Net decrease in assets		-60,000
Q24.
Answer is $ 119,000
Explanation:
Total Liabilities
Accounts payable			18,000
Unearned Service revenue		6,000
Mortgage payable			1,00,000
Total Liabilities				1,24,000
Total Stockholder's equity			57,000
Total of liabilities and Equity			1,81,000
Less: Assets
Accounts receivable			3,000
Cash				9,000
Inventory				8,000
Equipment			21,000
Land				21,000	62,000
Balance of Building				1,19,000