Question

The following balances were taken from the Adjusted Trial Balce of Mary Corp for the fiscal yeding December 31, 2011 Prepaid on Depreciatique Interest Parvable Redmi 11/2011 Notes Payable, De 5/1/2015 1.500 20 000 Unamned Service Revenue Depreciation Expensel en Eachine c h e credit bancs The Adjwid Trial Palace has a total de balance of $ 134.000 None of the above The Nistic the waris 515.500 10 The total Owners' Equity on the December 31, 2011 balance show 5 73,500 $ 76,500 S 80.000 IL The total Lisbiles on the December 31, 2011 balance sheet would be 533,000 D. $2,000 None of the above 12 The total Aucts on the December 31, 2011 balance she would be None of the show 13 Tim Company's Retained rings increased by $10,000 during 2011. Net income for 2011 was 514,000 and the ending balance in Cash was $4,000 Nvidends declared and paid during 2011 were: $94000 $14.000 58000 Atraction caused 55.000 increase in both o ut and s e quity. This transaction could have been Declaration and payment of the divided on comm o ck of 53,000 Investment of 5.000 cash in the business by selling additional shares of common stock Purchase of office equipment of 55.000 cash Purchase folloquen for $9.000, pay $4.000 cash and issuing a wote wable for the balance None of the above 15 523.000 of o u r prices to be used in a business are purchased for cash Total acts and owner'equity are unchanged The owner's quity is increased Total acts and liabilities are increased Total are increased silities are decreased

Answer 1

Here is the working

Account Name	Trial Balance	Income Statement	Balance Sheet
	Debit	Credit	Debit	Credit	Debit	Credit
Cash	40,000				40,000
Prepaid Rent	5,500				5,500
Accum Dep		5,000				5,000
Interest Payable		1,000				1,000
Common Stock		55,000				55,000
Dividends	1,500				1,500
Notes Payable		20,000				20,000
Interest Expense	1,000		1,000
Depreciation Expense	3,500		3,500
Rent Expense	3,000		3,000
Equipment	45,000				45,000
Accounts Payable		3,000				3,000
Wages Payable		2,000				2,000
Retained Earnings		6,000				6,000
Service Revenue		40,000		40,000
Accounts Receivable	17,500				17,500
Wages Expense	17,000		17,000
Unearned Service Revenue		2,000				2,000
TOTAL	134,000	134,000	24,500	40,000	109,500	94,000
Net Income			15,500			15,500
TOTALS			40,000	40,000	109,500	109,500

8.

As can be seen above the answer is $ 134,000 Option D

9.

Net Income as can be seen above is $ 15,500 Option A

10.

Total equity = Stock + Retained earning + Net Income - Dividends = 75,000 Option A

11.

Total Liabilities = Interest payable + Notes payable + Accounts payable + Wages payable + Unearned Rev = 28,000

12.

Total assets = Total liabilities + Equity = 75,000 + 28,000 = 103,000