Question

Use the adjusted trial balance for stockton company below to answer the questions that follow. stockton company adjusted trial balance december 31 cash 7,530 accounts receivable 2,100 prepaid expenses 700 equipment 13,700 accumulated depreciation 1,100 accounts payable 1,900 notes payable 4,300 common stock 1,000 retained earnings 12,940 dividends 790 fees earned 9,250 wages expense 2,500 rent expense 1,960 utilities expense 775 depreciation expense 250 miscellaneous expense 185 totals 30,490 30,490 determine total assets.
a. $16,830
b. $25,130
c. $24,030
d. $22,930

Answer 1

Given:
stockton company adjusted trial balance december 31
cash 7,530
accounts receivable 2,100
prepaid expenses 700
equipment 13,700
accumulated depreciation 1,100
accounts payable 1,900
notes payable 4,300
common stock 1,000
retained earnings 12,940
dividends 790
fees earned 9,250
wages expense 2,500
rent expense 1,960
utilities expense 775
depreciation expense 250
miscellaneous expense 185

To determine the total assets, we only have to consider the following:
cash                                         7,530 
accounts receivable                 2,100 
prepaid expenses                       700 
equipment                              13,700 
accumulated depreciation       (1,100) 
Total assets:                         22,930    CHOICE D.

NET INCOME: 
fees earned                                9,250 
wages expense                         (2,500) 
rent expense                             (1,960) 
utilities expense                           (775) 
depreciation expense                   (250) 
miscellaneous expense                (185)
Net Income                                  3,580

LIABILITIES AND S.H.E
accounts payable                        1,900 
notes payable                              4,300 
common stock                             1,000 
retained earnings                       12,940 
dividends                                      (790) 
Net Income                                   3,580
TOTAL LIABILITIES & SHE      22,930