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The following items are taken from the financial statements of Dinkel Company fo

ID: 2380052 • Letter: T

Question

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:

Accounts payable

$18,000

Accounts receivable

11,000

Accumulated depreciation - equipment

28,000

Advertising expense

21,000

Cash 15,000

15,000

Dinkel, Capital (1/1/10)

102,000

Dinkel, Drawing

14,000

Depreciation expense

12,000

Insurance expense

3,000

Note payable, due 6/30/11

70,000

Prepaid insurance (12-month policy)

6,000

Rent expense

17,000

Salaries expense

32,000

Service revenue

133,000

Supplies

4,000

Supplies expense

6,000

Equipment

210,000


What are total current assets at December 31, 2010?

$32,000

$36,000

$218,000

$26,000

Question 4

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010:

Accounts payable

$18,000

Accounts receivable

11,000

Accumulated depreciation - equipment

28,000

Advertising expense

21,000

Cash 15,000

15,000

Dinkel, Capital (1/1/10)

102,000

Dinkel, Drawing

14,000

Depreciation expense

12,000

Insurance expense

3,000

Note payable, due 6/30/11

70,000

Prepaid insurance (12-month policy)

6,000

Rent expense

17,000

Salaries expense

32,000

Service revenue

133,000

Supplies

4,000

Supplies expense

6,000

Equipment

210,000


What are total current assets at December 31, 2010?


$32,000

$36,000

$218,000

$26,000

The following items are taken from the financial statements of Dinkel Company for the year ending December 31, 2010: What are total current assets at December 31, 2010?

Explanation / Answer

The items which are liabilities to the company are :

Advertising expense, supplies expense, Depreciation expense, Insurance expense, prepaid insurance, rent expense, salaries expense, Accumulated depreciation - equipment, equipment

The items which are assets are :

accounts receivable, service revenue, supplies, cash, dinkel capital, dinkel drawing, accounts payable, note payable,

Total liabilities = 21000 + 6000 + 12000 + 3000 + 6000 + 17000 + 32000 + 28000 + 210000 = 335000

Total assets = 11000 + 133000 + 4000 + 15000 + 102000 + 14000 + 18000 + 70000 = 367000

Net assets = 367000 - 335000 = 32000.