Stude Prof 18. Carla's Computer Repair Shop started the year with total assets of $360,000 and tota Clat liabilities of $240,000. During the year, the business recorded $600,000 in com repair revenues, $340,000 in expenses, and the company paid dividends of 56o,000 Stockholders' equity at the end of the year was Tes a. $320,000. Ex b. $300,000. c. $380,000. d. $260,000. Ve A law firm received $2,000 cash for legal services to be performed in the future. The full 19. amount was credited to the liability account Unearned Legal Fees. If the legal services have been performed at the end of the accounting period and no adjusting entry is made, this would cause a. expenses to be overstated b. net income to be overstated. c. liabilities to be understated. d. revenues to be understated If the total credit column exceeds the total debit column of the income statement columns on a worksheet, then the company has 20. a. earned net income for the period. b. an error because debits do not equal credits. c. earned a net loss for the period. d. to make an adjusting entry. Management could determine the amounts due from customers by examining which ledger account? a. Service Revenue b. Accounts Payable c. Accounts Receivable d. Supplies 21. 22. Root Company provided consulting services and billed the client $2,500. As a result of this event, a. assets remained unchanged. b. assets increased by $2,500. c. stockholders' equity increased by $2,500. d. Both b and c. 8. A worksheet is a multiple column form that facilitates the identification of events. a. b. measurement process c. preparation of financial statements. d. analysis process