a company compiled the following financial information as of December 31, 2013:

Question

a company compiled the following financial information as of December 31, 2013:

Revenues                                          $170,000
Retained earnings (1/1/13) 30,000
Equipment                                            40,000
Expenses                                            125,000
Cash                                                     45,000
Dividends                                              10,000
Supplies                                                  5,000
Accounts payable 20,000
Accounts receivable 25,000
Common stock                                      40,000

The company's assets on December 31, 2013 are:

a. none of these are correct

b. $245,000

c. $125,000

d. $180,000

e. $90,000

Explanation / Answer

Company's assets = Equipment + Cash + Supplies + Accounts receivable

= 40000 + 45000 + 5000 + 25000

= $ 115000

Conclusion:- The company's assets on December 31, 2013 are $ 115000. So Option a is the right answer. (None of other options are correct.)

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