Answer:
1) The net income for the period ended December 31, 2018, is 68103.
2)The total liabilities and stockholders equity is 261615.
Explanation:
1) 1920 sales revenue is an unearned revenue since delivery will be made in 2019
Interest payable on note oct 1 :Interest =
[1 Oct - 31 Dec]
Interest receivable on march 1 :Interest=
[1 Mar -31 -Dec]
Supplies used = 1850 unadjusted -980 ending inventory = 870
Insurance expired for the period =
[1april -31 dec ]
This scenario is an example of GROUP THINKING.
Group thinking refers to the psychological phenomenon which normally occur withing a team or a group of people as a result of desire for harmony and conformity within the group. In the process of conforming to the group, irrational decisions are usually made.
The right answer for the question that is being asked and shown above is that: "liabilities increased and assets remained constant." If your liabilities increased and assets remained <span>constant</span>, your net worth on the balance sheet would have increased from one period to the next.