Adam Vega's Landscaping Company compiled the following list of account balances of various assets, liabilities, revenues, and expenses on December 31, 2016, the end of its first year of operations. Common stock $25,200 Accounts payable   5,000 Salary expense 9,000 Repairs expense 1,600 Dividends

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Adam Vega's Landscaping Company compiled the following list of account balances of various assets, liabilities, revenues, and expenses on December 31, 2016, the end of its first year of operations.

Common stock
$25,200
Accounts payable  
5,000
Salary expense
9,000
Repairs expense
1,600
Dividends  
10,000
Truck          
17,000
Equipment        
12,600
Notes payable
16,400
Cash
35,200
Supplies expense
3,200
Service revenue
43,600
Gasoline expense
1,600
 
 
 
QUESTION #1:
The total liabilities for Adam Vega's Landscaping on December 31, 2016 are:
 

A) 

$23,400

B) 

$73,000

C) 

$37,800

D) 

$21,400
 
Questions #2:
The total assets for Adam Vega's Landscaping on December 31, 2016 are:

A) 

$64,800

B) 

$63,200

C) 

$43,200

D) 

$56,200
 
 
 
Expert Solution
Step 1

Assets are the items your company owns that can provide future economic benefit. Liabilities are what you owe other parties. In short, assets put money in your pocket, and liabilities take money out. 

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