The assets and liabilities of Gidget Cat Corp. (Gidget) as at December 31, 20X6, and revenues and expenses for its year ended December 31, 20X6, and other select financial information follow:

Interest expense

$ 7,000

Accounts receivable

$ 15,000

Land

134,000

Advertising expense

13,000

Note payable

156,000

Building

65,000

Accounts payable

7,000

Salary expense

62,000

Rent expense

12,000

Salary payable

4,000

Equipment

60,000

Service revenue

170,000

Cash

11,000

Property tax expense

3,000

Retained earnings at January 1, 20X6, were $40,000.

Common shares at December 31, 20X6, were $30,000.

Dividends declared on common shares during the year ended December 31, 20X6, totalled $25,000.

What were Gidget's retained earnings as at December 31, 20X6?

a) $ 48,000

b) $ 88,000

c) $113,000

d) $118,000

2. The assets and liabilities of Libby Kennel Inc. (Libby) as at December 31, 20X6, and revenues and expenses for its year ended December 31, 20X6, as well as other select financial information, are as follows:

Accounts payable

$27,000

Inventory

40,000

Accounts receivable

31,000

Land

160,000

Accrued expenses payable

2,000

Office supplies

14,000

Advertising expense

3,000

Prepaid expenses

6,000

Bank loan

122,000

Property tax expense

4,000

Building

59,000

Rent expense

18,000

Cash

14,000

Retained earnings, 01/01/20X6

31,000

Common shares

22,000

Salary expense

101,000

Dividends declared and paid

13,000

Salary payable

12,000

Equipment

6,000

Service revenue

260,000

Interest expense

7,000

Introductory Financial Accounting Quiz 1

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What were Libby's total assets as at December 31, 20X6?

a) $330,000

b) $332,000

c) $352,000

d) $361,000