Total assets $132,000
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Accounts payable $ 11,000
Stockholders’ equity
Common stock $80,000
Retained earnings 41,000 121,000
Total liabilities and stockholders’ equity $132,000
Be. 192
Indicate in the space provided by each item whether it would appear on the income statement (IS), balance sheet (BS), or retained earnings statement (RE):
a. _____ Service Revenue g. ___ Accounts Receivable
b. _____ Utilities Expense h.___ Common Stock
c. _____ Cash i.____ Equipment
d. _____ Accounts Payable j.____ Advertising Expense
e. _____ Supplies k.___ Dividends
f. _____ Salaries and Wages Expense l.____ Notes Payable
Ans: N/A, LO: 3, Bloom: C, Difficulty: Medium, Min: 5, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
Solution 192
a. IS g. BS
b. IS h. BS