100%(2)2 out of 2 people found this document helpful
This preview shows page 1 - 2 out of 4 pages.
ACCT 220 Principles to Accounting I Homework 11). Bravo’s complete assets and liabilities are Accounts Receivable $800, Equipment$10,000, Accounts Payable $4,200, Prepaid Rent $2,000, Supplies $400, Bank Loan $1,600,and Tools $300. Bravo’s total assets are: (All account balances are normal).A. $11,000B. $13,100C. $11,500D. $13,500E. None of these.Answer : B
2). Bravo Company began operations at the beginning of 20X6 with a $10,000 cashinvestment by stockholders. During 20X6, Bravo Company had revenue on account of$5,000; of this amount $2,000 was collected during 20X6 and $3,000 of operating expensesduring 20X6; of this amount $1,000 was unpaid at year-end. During 20X6, $1,000 cash wasdisbursed as dividends. The only other transaction during 20X6 was the purchase of $5,000or equipment for cash near the end of the year. How much was Bravo Company’s 20X6 netincome?