1. Referring to the following adjusted trial balance, what is the amount of tota

ID: 2406326 • Letter: 1

Question

1. Referring to the following adjusted trial balance, what is the amount of total revenue? Woods Company Adjusted Trial Bala nce For the Year Ended December 31.201X $55.00 50,00 151,00 150,00 ccounts receivable nvento uipment ccumulated depreciation, equipm ent $20,00 10,00 56,000 50,000 nearned service revenue ccounts payable otes payable ommon Stock etained Earnin ividends ervice revenue alary expense 181,00 20,000 36,00 195.00 52,00 9,00 19,00 10,00 urance ex se tilities expense reciation expense Total OA) $215,000 B) $195,000 OC) 69,000

Explanation / Answer

Correct answer for question 1 ----Option B) $195000.00

Unearned revenue will not be considered as revenue as it is advances from customer.

Correct Answer for question 2----Option A) $90000.00

Calculation

Income Statement

Service revenue

$ 195,000.00

Operating expenses

Salary expense

$ 52,000.00

Insurance Expense

$ 9,000.00

Utilities Expense

$ 19,000.00

Depreciation Expense

$ 10,000.00

Total Operating Expenses

$ 90,000.00

Net Income

$ 105,000.00