1. Silver Company showed the following balances at the end of its first year:

Cash $ 6,000

Prepaid insurance 9,400

Accounts receivable 7,000

Notes payable 8,400

Common stock 2,800

Dividends 1,400

Revenues 44,000

Expenses 35,000

What did Silver Company show as total credits on its trial balance?

1. $55,200
2. $56,600
3. $66,000
4. $73,000

2. Smiths CPA firm (a corporation) started the year with total assets of $400,000 and total liabilities of $75,000. During the year, the business recorded $600,000 in accounting fee revenues, $275,000 in expenses, and Smith paid dividends of $75,000. Stockholders' equity at the end of the year was:

a. $325,000.

b. $475,000.

c. $575,000.

d. $650,000.

3. The following information is for Bright Eyes Auto Supplies:

Bright Eyes Auto Supplies

Balance Sheet

December 31, 2020

Cash $ 40,000 Accounts Payable $ 130,000

Prepaid Insurance 80,000 Salaries and Wages Payable 50,000

Accounts Receivable 100,000 Mortgage Payable 150,000

Inventory 140,000 Total Liabilities 330,000

Land Held for Investment 180,000

Land 250,000

Buildings $200,000 Common Stock $400,000

Less Accumulated Retained Earnings 340,000 740,000

Depreciation (60,000) 140,000

Trademark 140,000 Total Liabilities and

Total Assets $1,070,000 Stockholders Equity $1,070,000

The total dollar amount of liabilities to be classified as current liabilities is

a. $50,000.

b. $130,000.

c. $180,000.

d. $330,000.