Question 1
Use the following information in the adjusted trial balance for Stockton Company.
| Stockton Company | ||
| Adjusted Trial Balance | ||
| For the Year ended December 31, 2010 | ||
| Cash | $6,030 | |
| Accounts Receivable | 2,100 | |
| Prepaid Expenses | 700 | |
| Equipment | 13,700 | |
| Accumulated Depreciation | $1,100 | |
| Accounts Payable | 1,900 | |
| Notes Payable | 4,200 | |
| Capital Stock | 12,940 | |
| Dividends | 790 | |
| Fees Earned | 8,750 | |
| Wages Expense | 2,500 | |
| Rent Expense | 1,960 | |
| Utilities Expense | 775 | |
| Depreciation Expense | 250 | |
| Miscellaneous Expense | 85 | |
| Totals | $28,890 | $28,890 |
Determine the total liabilities for the period.
A. $1,900
B. $6,100
C. $4,200
D. $19,040
Question 2
Use the adjusted trial balance for Stockton Company to answer the questions that follow.
| Stockton Company Adjusted Trial Balance December 31 | ||
|---|---|---|
| Cash | 6,530 | |
| Accounts Receivable | 2,100 | |
| Prepaid Expenses | 700 | |
| Equipment | 13,700 | |
| Accumulated Depreciation | 1,100 | |
| Accounts Payable | 1,900 | |
| Notes Payable | 4,300 | |
| Bob Steely, Capital | 12,940 | |
| Bob Steely, Withdrawals | 790 | |
| Fees Earned | 9,250 | |
| Wages Expense | 2,500 | |
| Rent Expense | 1,960 | |
| Utilities Expense | 775 | |
| Depreciation Expense | 250 | |
| Miscellaneous Expense | 285 | |
| Totals | 29,490 | 29,490 |
1. Determine the owner’s equity ending balance for the period.
a. $12,150
b. $15,330
c. $16,120
d. $12,940
2. Determine the current assets.
a. $23,939
b. $9,330
c. $21,930
d. $8,630
3. Determine the total liabilities for the period.
a. $ 1,900
b. $6,200
c. $4,300
d. $20,240
4. There are four closing entries. The first one is to close revenues, the second one is to close expenses, the third one is to close _____, and the last one is to close the _____.
a. Income Summary, drawing account
b. Income Summary, Capital account
c. Income Summary, assets
d. Drawing account, Income Summary
5. Which of the accounts below would be closed by posting a debit to the account?
a. Unearned revenue
b. Fees Earned
c. Josh Morton, Drawing
d. Miscellaneous Expense
Question 3
The following is the adjusted trial balance for Stockton Company.
| Stockton Company Adjusted Trial Balance December 31 | ||
| Cash | 5,861 | |
| Accounts Receivable | 2,009 | |
| Prepaid Expenses | 661 | |
| Equipment | 14,291 | |
| Accumulated Depreciation | 5,273 | |
| Accounts Payable | 1,660 | |
| Notes Payable | 5,804 | |
| Common Stock | 1,000 | |
| Retained Earnings | 8,564 | |
| Dividends | 735 | |
| Fees Earned | 6,110 | |
| Wages Expense | 3,301 | |
| Rent Expense | 832 | |
| Utilities Expense | 487 | |
| Depreciation Expense | 179 | |
| Miscellaneous Expense | 55 | |
| Totals | 28,411 | 28,411 |
Determine the total assets.
Answer to question 1
Answer: B. $6,100
| Accounts Payable | 1,900 |
| Notes Payable | 4,200 |
| Total Liabilities | 6,100 |
The total liabilities amounted to $6,100.
Answer to question 2
1.
=12,940-790+9,250-2,500-1,960-775-250-285
=$15,630
- The answer is NONE OF THE ABOVE since the correct answer is $15,630
2.
=6,530+2,100+700
=$9,330
- The answer is B.
3.
=1,900+4,300
=$6,200
- The answer is B.
4.
The answer is A.
- There are four closing entries. The first one is to close revenues, the second one is to close expenses, the third one is to close Income Summary, and the last one is to close the drawing account .
5.
The answer is B.
- The Fees Earned has a credit account balance so in order to close is a debit entry must be posted.
Answer to question 3
| Calculation of Total Assets | |
| Cash | 5,861 |
| Accounts Receivable | 2,009 |
| Prepaid Expenses | 661 |
| Equipment | 14,291 |
| Less:Accumulated Depreciation | (5,273) |
| Total Assets | 17,549 |