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1) On July 1 of the current year, the assets and liabilities of Wong Industries,

ID: 2443005 • Letter: 1

Question

1) On July 1 of the current year, the assets and liabilities of Wong Industries, are as follows: Cash, $15,000; Accounts Receivable, $12,300; Supplies, $3,100; Land, $35,000; Accounts Payable, $8,700. What is the amount of stockholders’ equity as of July 1 of the current year?
A. $32,100
B. $43,700
C. $56,700
D. $65,400


2) If beginning retained earnings was $70,000, ending retained earnings was $48,000, and cash dividends in the amount of $21,000 were declared and paid, the amount of net income or net loss was
A. net income of $42,000
B. net income of $17,000
C. net loss of $22,000
D. net loss of $1,000


Explanation / Answer

C) 56,700 15,000+12,300+3,100+35,000-8,700 D) -1,000 70,000-48,000=22,000 Since dividends were 21,000 the other 1,000 must have been net loss.