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If total assets equal $336,000 and total owners' equity equals $115,500, then total liabilities must equal: A. $451,500 B. $220,500 C. Cannot be determined from the information given D. $115,500 Bonkers Co. issues 10,000 shares of $5 par value common stock for $150,000. The effect of this transaction is a: A. $150,000 increase in Common Stock account. B. $100,000 increase in Gain on Sale of Common Stock. C. $50,000 increase in Contributed Capital in Excess of Par. D. $50,000 increase in Common Stock account. On April 1, 2016, Maine Corporation paid $9,300 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation.

If total assets equal $336,000 and total owners' equity equals $115,500, then total liabilities must equal: A. $451,500 B. $220,500 C. Cannot be determined from the information given D. $115,500 Bonkers Co. issues 10,000 shares of $5 par value common stock for $150,000. The effect of this transaction is a: A. $150,000 increase in Common Stock account. B. $100,000 increase in Gain on Sale of Common Stock. C. $50,000 increase in Contributed Capital in Excess of Par. D. $50,000 increase in Common Stock account. On April 1, 2016, Maine Corporation paid $9,300 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation.

Survey of Accounting (Accounting I)
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter2: Basic Accounting Systems: Cash Basis
Section: Chapter Questions
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General Accounting Question no 1

If total assets equal $336,000 and total owners' equity equals $115,500, then total liabilities must equal: A. $451,500 B. $220,500 C. Cannot be determined from the information given D. $115,500 Bonkers Co. issues 10,000 shares of $5 par value common stock for $150,000. The effect of this transaction is a: A. $150,000 increase in Common Stock account. B. $100,000 increase in Gain on Sale of Common Stock. C. $50,000 increase in Contributed Capital in Excess of Par. D. $50,000 increase in Common Stock account. On April 1, 2016, Maine Corporation paid $9,300 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation.
Transcribed Image Text:If total assets equal $336,000 and total owners' equity equals $115,500, then total liabilities must equal: A. $451,500 B. $220,500 C. Cannot be determined from the information given D. $115,500 Bonkers Co. issues 10,000 shares of $5 par value common stock for $150,000. The effect of this transaction is a: A. $150,000 increase in Common Stock account. B. $100,000 increase in Gain on Sale of Common Stock. C. $50,000 increase in Contributed Capital in Excess of Par. D. $50,000 increase in Common Stock account. On April 1, 2016, Maine Corporation paid $9,300 cash in advance for a one-year lease on an office building. Assume that Maine records the prepaid rent as an asset and that the books are closed on December 31. Show the payment for the one-year lease and the related adjusting entry to recognize rent expense in the accounting equation.
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