1. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2013:

Accounts payable

$ 19,000

Accounts receivable	11,000
Accumulated depreciation equipment	28,000
Advertising expense	21,000
Cash	11,000
Common stock	40,000
Dividends	14,000
Depreciation expense	12,000
Equipment	190,000
Insurance expense	3,000
Note payable, due 6/30/14	70,000
Patents	20,000
Prepaid insurance (12-month policy)	6,000
Rent expense	17,000
Retained earnings (1/1/13)	65,000
Salaries and wages expense	32,000
Service revenue	125,000
Supplies	4,000
Supplies expense	6,000

What is total liabilities and stockholders' equity at December 31, 2013?

	A.	$214,000
	B.	$194,000
	C.	$228,000
	D.	$231,000

2.

The following information is for Sunny Day Real Estate:

Sunny Day Real Estate Balance Sheet December 31, 2013

Cash		$ 25,000			Accounts Payable	$ 60,000
Prepaid Insurance		30,000			Salaries and Wages Payable	15,000
Accounts Receivable		50,000			Mortgage Payable	85,000

Inventory

70,000

Total Liabilities

$160,000

Land Held for Investment		85,000
Land		120,000

Building

$100,000

Common Sock

$120,000

Less Accumulated

Retained Earnings

250,000

370,000

Depreciation

(20,000)

80,000

Trademark

70,000

Total Liabilities and

Total Assets

$530,000

Stockholders' Equity

$530,000

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

A.

$105,000.

B.

$260,000.

C.

$175,000.

D.

$190,000

3.

The income statement for the year 2013 of Fugazi Co. contains the following information:

Revenues

$70,000

Expenses:

	Salaries and Wages Expense	$45,000
	Rent Expense	12,000

Advertising Expense

8,000

Supplies Expense

6,000

Utilities Expense

2,500

Insurance Expense

2,000

Total expenses

75,500

Net income (loss)

$(5,500)

The entry to close the expense accounts includes a

	A.	credit to Income Summary for $5,500.
	B.	debit to Income Summary for $5,500.
	C.	debit to Salaries and Wages Expense for $2,500.
	D.	debit to Income Summary for $75,500.