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Berwick Company compiled the following financial information as of December 31, 2008: Revenues   $140,000 Berwick, Capital...

Berwick Company compiled the following financial information as of December 31, 2008:
Revenues   $140,000
Berwick, Capital (1/1/08)   105,000
Equipment   40,000
Expenses   125,000
Cash   35,000
Berwick, Drawings   10,000
Supplies   5,000
Accounts payable   20,000
Accounts receivable   15,000

10.   Berwick’s assets on December 31, 2008 are
a.   $235,000.
b.   $170,000.
c.   $80,000.
d   $95,000.

11.   Berwick’s owner’s equity on December 31, 2008 is
a.   $105,000.
b.   $110,000.
c.   $80,000.
d.   $120,000.

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Expert Solution

10)
Berwick's assets on December 31, 2008
d. $       95,000
Working:
Equipment        40,000
Cash        35,000
Supplies          5,000
Accounts receivable        15,000
Total        95,000
11)
b.        1,10,000
Working:
# 1 Revenues    1,40,000
Expenses -1,25,000
Net Income        15,000
# 2 Berwick, Capital (1/1/08)    1,05,000
Add net income        15,000
Less , Berwick Drawings        10,000
Berwick, Capital (12/31/08)    1,10,000

ekkarill92 answered 2 years ago
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