LAKE CORPORATION
ADJUSTED TRIAL BALANCE
DECEMBER 31
Cash	$15,000
Accounts Receivable	7,000
Supplies	3,000
Prepaid Insurance	5,000
Equipment	24,000
Accumulated Depreciation, Equipment			$ 6,000
Accounts Payable			12,000
Common Stock			20,000
Retained Earnings at 1/1			10,000
Dividends	8,000
Commission Revenue			34,000
Depreciation Expense, Equipment	2,000
Wages Expense	14,000
Insurance Expense	4,000
	$82,000		$82,000

December 31 Retained Earnings is:

Select one:

a.

$44,000

b.

$32,000

c.

$24,000

d.

$14,000

e.

$16,000

2.

Ridge Corporation had a Supplies account that showed a beginning debit balance of $500. During the year, supplies purchased totaled $250. There were $450 of supplies remaining at year-end. The adjusting entry for Supplies would include a:

Select one:

a.

Credit to Supplies for $300

b.

Debit to Supplies Expense for $700

c.

Credit to Supplies Expense for $450

d.

Debit to Supplies for $250

e.

Debit to Supplies Expense for $450

3.Given the following items from the balance sheet of the Piper Company:

Assets			Liabilities
Cash	$ 10,000		Accounts Payable	$ 25,000
Accounts Receivable	15,000		Dividends Payable	15,000
Land	20,000		Total Liabilities	40,000
Building	30,000
Equipment	25,000		Stockholders' Equity
			Common Stock	50,000
			Retained Earnings	10,000
Total Assets	$100,000		Total Liabilities and Stockholders' Equity	$100,000

Working Capital is:

Select one:

a.

$60,000

b.

$0

c.

$75,000

d.

$25,000

e.

$(15,000)