I. The following is a list of account balances at the end of 2015 for Otis Corpo
ID: 2811875 • Letter: I
Question
I. The following is a list of account balances at the end of 2015 for Otis Corporation: v Sales revenue S160,000 Cash $24,000 12,000 Selling expenses 25,000 33,000 Common stock38,000 9,000 Interest income 2,000 Salaries and wages expense 33,000 Cost of goods sold 74,000 4,000 3,000 Income tax expense 6,000 Accounts receivable Equipment Accounts payable Inventories Income taxes payable Notes payable 15,000 Prepaid rent 14,000 A. What are total assets at the end of 2015? i 000 B. What are total liabilities at the end of 2015 C. What is net income for the year ended 12/31/15? D. What is retained earnings at the end of 2015? E. What is stockholders' equity (owners' equity) at the end of 2015? SEA LExplanation / Answer
Answer A Total assets at the end of 2015 Accounts receivables $12,000.00 Equipment $33,000.00 Inventories $15,000.00 Cash $24,000.00 Prepaid rent $4,000.00 Total assets at the end of 2015 $88,000.00 Answer B Total Liabilities at the end of 2015 Accounts Payable $9,000.00 Income Taxes Payable $3,000.00 Notes Payable $14,000.00 Total Liabilities at the end of 2015 $26,000.00 Answer C Net Income for the year ended 31/12/15 Revenue Sales Revenue $160,000.00 Interest Income $2,000.00 Total Revenue $162,000.00 Less : Expenses Cost of goods sold $74,000.00 Salaries and Wages Expenses $33,000.00 Selling Expenses $25,000.00 Total Expenses $132,000.00 Profit before Taxes $30,000.00 Less : Income Tax Expenses $6,000.00 Net Income for the year ended 31/12/15 $24,000.00 Answer D Retained Earnings at the end of 2015 Beginning balance $0.00 Add : Net Income for 2015 $24,000.00 Retained Earnings at the end of 2015 $24,000.00 Answer E Stockholders Equity at the end of 2015 Common stock $38,000.00 Add : Retained earnings $24,000.00 Stockholders Equity at the end of 2015 $62,000.00