Question

David Bash's Landscaping Company has the following list of assets, liabilities, revenues and expenses on December 31, 2016, which is the end of its first year of operations:

Common stock $40,400

Accounts payable 5,000

Salary expense 15,000

Repairs expense     2,200

Dividends       10,000

Truck    24,000

Equipment     22,200

Notes payable 12,800

Cash   60,400

Supplies expense 5,400

Service revenue 77,200

Gasoline expense 2,200

The stockholders' equity for David Bash's Landscaping on December 31, 2016 is:

A.

$106,400

B.

$82,800

C.

$100,800

D.

$92,600

Answer 1

FIGHTIN BLUE HENS CORPORATION
INCOME STATEMENT
PARTICULARS	AMOUNT
Service Revenue (A)	$                    77,200
Less : Expenses
Salary Expenses	$                    15,000
Repairs Expenses	$                      2,200
Supplies Expenses	$                      5,400
Gasoline Expenses	$                      2,200
Total Expenses (B)	$                    24,800
Net Income (A-B)	$                    52,400
Less: Dividends	$                    10,000
Retained Earnings	$                    42,400
FIGHTIN BLUE HENS CORPORATION
BALANCE SHEET
ASSETS	AMOUNT	LIABILITIES	AMOUNT
FIXED ASSETS		CURRENT LIABILITIES	AMOUNT
Truck	$                    24,000	Account Payable	$                          5,000
Equipment	$                    22,200	Notes Payable	$                       12,800
TOTAL FIXED ASSETS (A)	$                    46,200	TOTAL CURRENT LIABILITIES (A)	$                       17,800
CURRENT ASSETS		OWNER'S EQUITY
Cash	$                    60,400	Common Stock	$                       40,400
TOTAL CURRENT ASSETS(b)	$                    60,400	Retained Earning	$                       42,400
		TOTAL OWNER'S EQUITY (B)	$                       82,800
TOTAL ASSETS (A + B)	$                1,06,600	TOTAL LIABILITIES AND OWNERS EQUITY (A +B)	$                    1,00,600
Answer = Option B = $ 82,800