Information related to the Berkley Company for the calendar year 2014 follows: Liabilities, December 31, 2010 5400 Assets, December 31, 2010 700 Dividends distributed during 2010 90 Liabilities, December 31, 2009 250 Assets, December 31, 2009 350 Assuming no capital stock was issued during 2014, the net income earned by the Berkley Company during 2014 was SHO b. $200 $260 d. $290 The basic purpose of a trial balance is to a list all of the accounts in the general ledger b. list all of the accounts in the general ledge that have a balance e. be sure that all journal entries have been recorded daily that the total credits equal the total debits 3 What relationship exists between the general joumal and the general ledger? The general ledger accounts contain the same information as in the general joumal justin 1 different format b. The balances in the general ledger will always equal those in the general joumal c. After all postings from the general joumat are complete the debit balances in the general ledger will marely equal the credit balances d. The number of accounts in the general journal will always be larger than the number of mocounts in the general ledger. A prepaid expenses * payment received by the company in chance for the future sale of inventory or performance of services banitem of goods or services purchased by the company for use in its operations but not fully consumed by the end of the accounting period can expense that has been incurred during the counting period but has been neither paid nor recorded dan item that has been earned by the company during the accounting period but has been neither received nor recorded 28. The Oliver Construction Company received $18,000 for six months rental income in advance on November 1, 2014, and credited the Rental Revenue account. The required adjusting entry on December 31, 2014, would include a a credit to Rental Revenue for $6,000 bo debit to Rental Revenue for $12.000 credit to Rental Receivable for $12,000 d. debit to Rental Revenue for $6,000