More accouting question...working captiol etc?
Question:
•Stock was issued for $15,000 cash.
•Supplies worth $12,000 were purchased with cash, by year-end only $3,000 of the supplies were available to be used in 2006. (9000 used during year)
•Sold $20,000 worth of coated apples; all collected in cash.
Based on the above information for Katie, what was stockholders’ equity at the end of 2005?
A.$15,000
B.$29,000
C.$26,000 <--- answer
D.$35,000
E.$23,000
1
19.Little Blue had the following account balances at 12/31/05 (This is a complete list):
Cash50,000
A/R20,000
Inventory35,000
Building & Equipment 105,000
A/P30,000
N/P-long term60,000
Con Cap80,000
R/E30,000
What is the working capital at 12/31/05?
A. $20,000
B. $15,000
C. $45,000
D. $75,000
Answer is 45,000
Answer:
18. 15k in Cash - 12k paid for supplies + 20k cash for sold items + 3k remaining inventory = 26k
19. Cash (50k) + AR (20k) + Inventory (35k) - AP (30k) = 75k Shouldn't that be the answer?
(it's possible not to include inventory in that calculation, however, that still doesn't come up w/ an answer of 45k)
Last one:
75k income - 35k in expenses = 40k net income.
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