CSO 1.5, 1.6

154 11. When preparing the statement of owner's equity, the beginning capital balance can always be found 155 156 A. in the statement of cash flows 157 B. in the Balance Sheet columns of the work sheet 158 C. in the general ledger 159 D. in the Income Statement columns of the work sheet 160 161 162 12. Accumulated Depreciation appears on the 163 164 A. balance sheet in the property, plant, and equipment section 165 3. income statement as an operating expense 166 C. balance sheet in the long-term liabilities section 167 D. balance sheet in the current assets section 168 169 170 13. The first item appearing on the statement of retained earnings is 171 172 A. the ending balance of retained earnings 173 B. the beginning balance of retained earnings 174 C. owner withdrawals 175 D. net income 176 177 178 For problems 14. and 15., refer to the following information related to Stockton Company. 179 180 Stockton Company 181 Adjusted Trial Balance 182 December 31, 20X2 183 184 Cash 6,530 185 Accounts Receivable 2,100 186 Prepaid Expenses 700 187 Equipment 13,700 188 Accumulated Depreciation 1,100 189 Accounts Payable 1,900 190 Notes Payable 4,300 191 Bob Steely, Capital 12,940 192 Bob Steely, Withdrawals 790 193 Fees Earned 9,250 194 Wages Expense 2,500 195 Rent Expense 1,960 196 Utilities Expense 775 197 Depreciation Expense 250 198 Miscellaneous Expense 185 199 Totals 29,490 29,490 200 201 14 Determine the net income (loss) for the period. 202 203 A. net loss $790 204 B. net income $3,580 205 C. net loss $5,670 206 D. net income $9,250 207 218 219 15 . Determine the owner's equity ending balance. 220 221 15,730 222 21,400 223 6,480 224 12,150 225