Answer to number 16.

Green Enterprises had the following events during Year 1: 1) The business issued $11,000 of common stock to its stockholders. 2) The business purchased land for $19,000 cash. 3) Services were provided to customers for $37,000 cash. 4) Services were provided to customers for $12,000 on account. 5) The company borrowed $23,000 from the bank. 6) Operating expenses of S17,000 were incurred and paid in cash. 7) Salary expense of $5,000 was accrued. 8) A dividend of $6,000 was paid to the stockholders of Green Enterprises. 15) The entry Green will make to record the services provided on account in item 4 is: A) Increase Cash $12,000 and Increase Revenue $12,000 B) Increase Cash $12,000 and Increase Unearned Revenue $12,000 C) Increase Accounts Receivable $12,000 and Increase Revenue $12,000 D) Decrease Cash $12,000 and Increase Accounts Payable $12,000 E) Increase Accounts Receivable $12,000 and Increase Unearned Revenue $12,000 16) Assuming the company began operations during Year 1, the amount of Green's Retained Earnings as of December 31, Year 1 would be: A) $14,000 B) $27,000 C) $32,000 D) $26,000 E) $21,000