1.) The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Owner’s capital (1/1/14) 102,000 Owner’s drawings 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/15 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total long-term liabilities at December 31, 2014? $90,000 $88,000 $0 $70,000
1.) The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation – equipment 28,000 Advertising expense 21,000 Cash 15,000 Owner’s capital (1/1/14) 102,000 Owner’s drawings 14,000 Depreciation expense 12,000 Insurance expense 3,000 Note payable, due 6/30/15 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense 6,000 Equipment 210,000 What are total long-term liabilities at December 31, 2014? $90,000 $88,000 $0 $70,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1.) The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2014:
|
Accounts payable |
$ 18,000 |
|
Accounts receivable |
11,000 |
|
|
28,000 |
|
Advertising expense |
21,000 |
|
Cash |
15,000 |
|
Owner’s capital (1/1/14) |
102,000 |
|
Owner’s drawings |
14,000 |
|
Depreciation expense |
12,000 |
|
Insurance expense |
3,000 |
|
Note payable, due 6/30/15 |
70,000 |
|
Prepaid insurance (12-month policy) |
6,000 |
|
Rent expense |
17,000 |
|
Salaries and wages expense |
32,000 |
|
Service revenue |
133,000 |
|
Supplies |
4,000 |
|
Supplies expense |
6,000 |
|
Equipment |
210,000 |
What are total long-term liabilities at December 31, 2014?
|
$90,000 |
|
$88,000 |
|
$0 |
|
$70,000 |
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