Q1. At the beginning of the year, Hernandez Company had total assets of $800,000 and total liabilities of $500,000. Answer the following questions. (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amount of owner's equity at the end of the year? (b) During the year, total liabilities increased $100,000 and owner's equity decreased $70,000. What is the amount of total assets at the end of the year? (c) If total assets decreased $80,000 and owner's equity increased $120,000 during the year, what is the amount of total liabilities at the end of the year? -0- Q3. Drew Carey Company has the following balances in selected accounts on December 31, 2010. Accounts Receivable $-0- Accumulated Depreciation Equipment Equipment 7,000 Interest Payable Notes Payable 10,000 Prepaid Insurance 2,100 Salaries Payable -0- Supplies 2,450 Unearned Consulting Revenue 40,000 All the accounts have normal balances. The information below has been gathered at December 31, 2010. 1. Drew Carey Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2010. 2. A count of supplies on December 31, 2010, indicates that supplies of $800 are on hand. 3. Depreciation on the equipment for 2010 is $1,000. 4. Drew Carey Company paid $2,100 for 12 months of insurance coverage on June 1, 2010. 5. On December 1, 2010, Drew Carey collected $40,000 for consulting services to be performed from December 1, 2010, through March 31, 2011. 6. Drew Carey performed consulting services for a client in December 2010. The client will be billed $4,200. 7. Drew Carey Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2010. Instructions Prepare adjusting entries for the seven items described above