The balances of select accounts of Donovan, Inc. as of December 31, 2018 are giv
ID: 2410385 • Letter: T
Question
The balances of select accounts of Donovan, Inc. as of December 31, 2018 are given below.
Debit
Credit
Building
$120,000
Cash
7,000
Office Supplies
700
Furniture
6,000
Prepaid Insurance
650
Depreciationlong dash—Furniture
$4,000
Land
33,000
Depreciationlong dash—Building
4,000
Accounts Receivable
4,000
What amount of total long?term assets would be shown on the balance sheet at December 31, 2018?
A.$159,000
B.$151,000
C.$153,000
D.$120000
Debit
Credit
Building
$120,000
Cash
7,000
Office Supplies
700
Furniture
6,000
Prepaid Insurance
650
AccumulatedDepreciationlong dash—Furniture
$4,000
Land
33,000
AccumulatedDepreciationlong dash—Building
4,000
Accounts Receivable
4,000
Explanation / Answer
B. $151,000
Long-term Assets = Building + Furniture + Land - Accumulated Depreciation--Furniture - Accumulated Depreciation--Building
Long-term Assets = $120,000 + $6,000 + $33,000 - $4,000 - $4,000 = $151,000
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