QUESTION 5 The Alana Corporation had the following account balances on July 31.

Question

QUESTION 5 The Alana Corporation had the following account balances on July 31. $9,000 $31,600 $3,000 Accounts payable $26,000 $1,500 $1,700 Supplies expense $1,300 Salary expense Supplies Rent expense $4,100 Fees revenue $3,500 Cash ncome taxes expense $2,000 Prepaid rent Dividends etained earnings $8,000 Accounts receivable $15,000 Common stock $19,500 ncome taxes payablel $1,200 Determine the company's liabilities on July 31. a. $26,000 Ob.$27.200 c. $24,100 O d.$47,600 QUESTION 6 The StKitts-Nevis Corporation's general ledger included the following unadju Salary expense $8,600 Prepaid insurance so Cliek Save and Submit to save and submit. Click Saue All Answers to save all an

Explanation / Answer

Answer is B)27,200

Why B)

Liabilities

Tax Liability(payable) -1,200

Accounts Payable-26,000 Total Liabilities=27,200

Now analyse What other expenses are of?

Salary expense - Is a expense in income statement

Supplies- Is revenue part

Rent Expense - Again expense in income statement.(if it is Rent payable then will be Liability)

Income Tax Expense- Is figure in income Statement arrived by multiplying Tax rate with net profit.

Dividend- are paid out so Deduct from RE in F/P and in Cash Statement

Prepaid Rent-Is an asset since we paid in advance

Supplies expense - expense item

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