1) On January 1 of the current year, Bob's Lawn Care Service reported owner's capital totaling $123,700. During the current year, total revenues were $97,200 while total expenses were $84,300. Also, during the current year Bob withdrew $21,200 from the company. No other changes in equity occurred during the year. If, on December 31 of the current year, total assets are $196,000, the change in owner's capital during the year was: a. A decrease of $8,300. b. A increase of $34,100. c. An decrease of $34,100. d. Impossible to determine from the information provided. e. An increase of $8,300. 2) Andrea Conaway opened Wonderland Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1.Conaway invested $19,500 cash in the business. 2.Conaway contributed $26,000 of photography equipment to the business. 3.The company paid $3,300 cash for an insurance policy covering the next 24 months. 4.The company received $8,100 cash for services provided during January. 5.The company purchased $7,400 of office equipment on credit. 6.The company provided $3,350 of services to customers on account. 7.The company paid cash of $2,100 for monthly rent. 8.The company paid $3,700 on the office equipment purchased in transaction #5 above. 9.Paid $335 cash for January utilities. Based on this information, the balance in the Andrea Conaway, Capital account reported on the Statement of Owner's Equity at the end of the month would be: a. $42,200. b. $53,600. c. $43,750. d. $54,515. e. $43,415. 3) A company had the following accounts and balances year-end: Cash.......................$40,000 Accounts receivable.....$42,000 Accounts payable........$22,000 Fees earned..............$89,000 Rent expense............$17,000 Insurance expense.......$6,800 Supplies...................$7,000 Sam, Capital..............$21,800 Sam, Withdrawals 20,000 If all of the accounts have normal balances, what are the totals for the trial balance? a. $65,200. b. $89,000. c. $132,800. d. $265,600. e. $238,600. 4) A trial balance taken at year-end showed total credits exceed total debits by $6,030. This discrepancy could have been caused by: a.The balance of $6,700 in the Office Equipment account being entered on the trial balance as a debit of $670. b. An error in the general journal where a $6,030 increase in Accounts Receivable was recorded as an increase in Cash. c. A net income of $6,030. d. The balance of $60,300 in Accounts Payable being entered in the trial balance as $670. e. An error in the general journal where a $6,030 increase in Accounts Payable was recorded as a decrease in Accounts Payable. 5) Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1.Smith invested $26,000 cash in the business. 2.Smith contributed $102,000 of equipment to the business. 3.The company paid $2,200 cash to rent office space for the month. 4.The company received $17,000 cash for repair services provided during March. 5.The company paid $6,400 for salaries for the month. 6.The company provided $3,200 of services to customers on account. 7.The company paid cash of $520 for monthly utilities. 8.The company received $3,300 cash in advance of providing repair services to a customer. 9.Smith withdrew $5,200 for his personal use from the company. Based on this information, net income for March would be: a.$11,080. b. $14,380. c. $5,880. d. $9,180. e. $14,480. 6) Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1.Smith invested $30,000 cash in the business. 2.Smith contributed $110,000 of equipment to the business. 3.The company paid $3,000 cash to rent office space for the month. 4.The company received $21,000 cash for repair services provided during March. 5.The company paid $7,200 for salaries for the month. 6.The company provided $4,000 of services to customers on account. 7.The company paid cash of $600 for monthly utilities. 8.The company received $4,100 cash in advance of providing repair services to a customer. 9.Smith withdrew $6,000 for his personal use from the company. Based on this information, the balance in Hal Smith, Capital reported on the Statement of Owner's Equity at the end of March would be: a. $152,300. b. $148,200. c. $142,200. d. $12,300. e. $18,400