7. As of December 31,2008, Stoneland Company has assets of (SO 7$3,500 and stockholders’ equity of $2,000. What are the lia¬

bilities for Stoneland Company as of December 31,2008?

a. $1,500.

b. $1,000.

c. $2,500.

d. $2,000.

8. On the last day of the period, Jim Otto Company buys a (SO 8$900 machine on credit. This transaction will affect the:

a. income statement only.

b. balance sheet only.

c. income statement and retained earnings statement only.

d. income statement, retained earnings statement, and balance sheet.