A companys financial records at the end of the year including the following amounts:

Cash

$

70,100

Accounts receivable

28,100

Supplies

4,100

Accounts payable

10,100

Notes payable

5,050

Retained earnings, beginning of year

17,100

Common stock

41,000

Service revenue

52,350

Wages expense

8,100

Advertising expense

5,100

Rent expense

10,100

What is the amount of net income on the income statement for the year?

$37,150.

$88,250.

$29,050.

$46,150.

If total liabilities decreased by $25,300 and stockholders' equity increased by $4,850 during a period of time, then total assets must change by what amount and direction during the same time period?

$30,150 decrease.

$30,150 increase.

$20,450 increase.

$20,450 decrease.

Melodys Piano School operations for the month of May were limited to the following transactions:

Provided $1,050 of piano lessons to students who paid in cash.

Provided $820 of piano lessons on account.

Collected $615 from students who took piano lessons during April.

Paid Aprils piano rental bill of $450.

Received Mays piano rental bill of $500 and set it aside for payment in June.

What is Melody's Net Income for May using the cash basis of accounting?

$1,885

$1,370

$1,215

$615

Consider the following information from a companys unadjusted trial balance at December 31, 2015. All accounts have normal balances.

Accounts receivable	$	5,500
Accounts payable		700
Cash		1,800
Service revenue		6,800
Common stock		5,000
Equipment		5,900
Insurance expense		450
Land		4,800
Notes payable, due 2018		5,000
Notes receivable, matures 2016		1,300
Prepaid insurance		450
Rent expense		1,450
Retained earning, January 1, 2015		7,950
Salaries and wages expense		3,800

What is the total of the debit side of the unadjusted trial balance?

$20,450.

$25,450.

$19,750.

$16,950.