The assets and liabilities of Thompson Computer Services at March 31, 2014, and its revenue and expenses for the year are listed below. The capital of the owner was $187,000 on April 1, 2013. Mr. Thompson invested an additional $15,000 in the business during the year.

Accounts Payable	$1,200		Miscellaneous Expense	$590
Accounts Receivable	9,860		Office Expense	590
Cash	33,200		Supplies	1,670
Fees Earned	78,030		Wages Expense	34,990
Land	46,600		Drawing	6,000
Building	147,730

Prepare a balance sheet for the current year ended March 31, 2014

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2. On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,470 Accounts Receivable, $8,807 Supplies, $1,994 Land, $24,505 Accounts Payable, $5,724. What is the amount of owner's equity (John Wongs capital) as of July 1 of the current year?

A.$51,500

B.$19,277

C.$40,052

D.$10,470

3. On May 7, Carpet Barn Company offered to pay $72,090 for land that had a selling price of $90,000. On May 15, Carpet Barn accepted a counteroffer of $87,260. On June 5, the land was assessed at a value of $100,000 for property tax purposes. On December 10, Carpet Barn Company was offered $130,310 for the land by another company. At what value should the land be recorded in Carpet Barn Company's records?

4. Simpson Auto Body Repair purchased $18,357 of Machinery. The company paid $4,248 in cash at the time of the purchase and the remainder was purchased on account to be paid in four monthly installments. How will the purchase affect the accounting equation?

A.Increase Total Assets by a net amount of $14,109(increase Machinery $18,357 and decrease Cash $4,248) and increase Liabilities (Accounts Payable $14,109)

B.Increase Assets (Machinery $18,357) and decrease Liabilities (Accounts Payable $18,357)

C.Increase Total Assets by a net amount of $18,357 (increase Machinery $14,109 and increase Cash $4,248) and decrease Liabilities (Accounts Payable $18,357)

D.Increase Assets (Machinery $14,109) and increase Liabilities (Accounts Payable $14,109)

5. If total assets decreased by $88,419 during a period of time and the owner's equity increased by $74,220 during the same period, then the amount and direction (increase or decrease) of the period's change in total liabilities is

A.$88,419 decrease

B.$162,639 increase

C.$162,639 decrease

D.$14,199 increase

6,000 Land 46,600 Drawing Building 147,730 Prepare a balance sheet for the current year ended March 31, 2014. Thompson's Computer Services Balance Sheet March 31, 2014 Assets mm Total assets Liabilities Owner's Equity Total liabilities and owner's equity