Question

1. At December 31, Year 1, the accounting records of Braun Corporation contain the following items:

Accounts Payable	$ 13,500	Accounts Receivable	$ 35,000
Land	$ 235,000	Cash	?
Capital Stock	?	Equipment	$ 115,000
Building	$ 175,000	Notes Payable	$ 185,000
Retained Earnings	$ 155,000

If Capital Stock is $315,000, total assets of Braun Corporation at December 31, Year 1, amounts to:

Multiple Choice

• $668,500.

• $703,500.

• $98,500.

2.

At December 31, Year 1, the accounting records of Braun Corporation contain the following items:

Accounts Payable	$ 15,500	Accounts Receivable	$ 39,000
Land	$ 239,000	Cash	?
Capital Stock	?	Equipment	$ 119,000
Building	$ 179,000	Notes Payable	$ 189,000
Retained Earnings	$ 159,000

If Cash at December 31, Year 1, is $85,000, Capital Stock is:

Multiple Choice

• $297,500.

• $615,500.

• $167,000.

• $258,500.

3.  

At December 31, Year 1, the accounting records of Braun Corporation contain the following items:

Accounts Payable	$ 14,500	Accounts Receivable	$ 37,000
Land	$ 237,000	Cash	?
Capital Stock	?	Equipment	$ 117,000
Building	$ 177,000	Notes Payable	$ 187,000
Retained Earnings	$ 157,000

If Cash at December 31, Year 1, is $23,000, total owners' equity is:

Multiple Choice

• $358,500.

• $591,000.

• $157,000.

• $389,500.

4.

At December 31, Year 1, the accounting records of Braun Corporation contain the following items:

Accounts Payable	$ 14,000	Accounts Receivable	$ 36,000
Land	$ 236,000	Cash	?
Capital Stock	?	Equipment	$ 116,000
Building	$ 176,000	Notes Payable	$ 186,000
Retained Earnings	$ 156,000

If Cash at December 31, Year 1, is $62,000, total assets amounts to:

Multiple Choice

• $782,000.

• $626,000.

• $590,000.

• $640,000.

Answer 1

1) Calculate total assets

Capital Stock	315000
Retained earnings	155000
Account payable	13500
Notes payable	185000
Total assets	668500

So answer is a) $668500

2) calculate capital Stock

Cash	85000
Account receivable	39000
Land	239000
Building	179000
Equipment	119000
Total assets	661000
Liabilities	204500
Stockholder's equity (661000-204500)	456500

Capital Stock = 456500-159000 = 297500

So answer is a) $297500

3) calculate owner's equity

Cash	23000
Account receivable	37000
Land	237000
Building	177000
Equipment	117000
Total assets	591000
Liabilities	201500
Stockholder's equity (591000-201500)	389500

So answer is d) $389500

4) calculate Total assets

Cash	62000
Account receivable	36000
Land	236000
Building	176000
Equipment	116000
Total assets	626000

So answer is b) $626000