(assume this is the first year of operations for Giant Telecom Co., and assume Giant Telecom pays cash unless noted otherwise, even if it results in Giant Telecom having a credit balance in cash):

1/1 Issued 10,000 shares of common stock with a part value of $1 for $510,000. 2/1 Pay $150,000 for equipment, 10 year useful life, straight line depreciation. Assume full year depreciation in year 1. 3/1 Signs a 5-year headquarters lease, paying full amount of $500,000 upfront. 3/15 Deliver services to client and bill in full for $775,000 (client will pay at a later date). 5/1 Purchase $100,000 worth of supplies on credit. By 12/31 $50,000 of supplies are left 8/1 Receive $2,000,000 in advance payment from a client for services that will be performed by Giant Telecom. in 2024. 10/1 Declare $40,000 in dividends to be paid in 2024. 11/1 Purchase $650,000 in inventory. 12/1 Pay $25,000 of the 5/1 purchase of supplies.

Question:

1. What is the cash amount reported on the 12/31/23 Balance Sheet?

a. $1,185,000

b. $1,860,000

c. $1,920,000

d. 1,960,000

e. $2,000,000

2. What are total liabilities on the 2023 Balance Sheet?

a. $2,050,000

b. $2,075,000

c. $115,000

d. None of the above

e. $2,115,000

3. What is supplies expense on the 2023 Income Statement?

a. $25,000

b. 100,000

c. $50,000

d. $0

e. none of the above