2-5

Use the following data to answer Questions 2 through 4. The following information pertains to Alpha Company before closing entries. Cash $18,000 Supplies 6,750 Prepaid rent 3,000 Salaries expense 6,750 Equipment 97,500 Service revenue 45,000 Miscellaneous expenses 30,000 Dividends 4,500 Accounts payable 7,500 Common stock 102,000 Retained earnings 12,000 2. What is the amount of total assets? A. $122,250 B. $123,750 C. $102,750 D. $125,250 3. What is the amount of total liabilities? A. $7,500 B. $117,750 C. $102,750 D. $125,250 4. What is the amount of total shareholders' equity? A. $7,500 B. $117,750 C. $102,750 D. $125,250 5. An omission in the notes to the financial statements that is so serious that even a qualified opinion is not justified would result in A. A disclaimer B. An unqualified opinion. C. An adverse opinion. D. A consistency exception