Question
The following financial statements were prepared at the end of the month of May: TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May
The following financial statements were prepared at the end of the month of May:
TOPS IN TOPIARY - INCOME STATEMENT FOR the month of May
Revenue | $ | 2,540 | ||||
Expenses: | ||||||
Rent Expense | $ | 500 | ||||
Advertising Expense | $ | 500 | ||||
Wages Expense | $ | 200 | $ | 1,200 | ||
Net Income | $ | 1,340 | ||||
TOPS IN TOPIARY - STATEMENT OF OWNER'S EQUITY FOR the month of MAY
Owner's Equity at May 1 | $ | 0 | |
plus: Investment | 2,000 | ||
plus: Net Income | 1,340 | ||
less: Withdrawals | 0 | ||
Owner's Equity at May 31 | $ | 3,340 | |
TOPS IN TOPIARY - BALANCE SHEET AS OF MAY 31
ASSETS | LIABILITES AND OWNER'S EQUITY | |||||||||
Current Assets: | Current Liabilities: | |||||||||
Cash | $ | 1,380 | Accounts Payable | $ | 300 | |||||
Accounts Receivable | $ | 1,500 | Advertising Payable | $ | 500 | |||||
Prepaid Rent | $ | 500 | Advances from Customers | $ | 200 | |||||
Prepaid Advertising | $ | 500 | ||||||||
Supplies | $ | 100 | $ | 3,980 | ||||||
Equipment | $ | 360 | Owner's Equity | $ | 3,340 | |||||
Total Assets | $ | 4,340 | Total Liabilities & OE | $ | 4,340 | |||||
During June the following transactions occurred:
1) Paid the helper the $200 owed from works done in May (the amount owed is in Accounts Payable).
2) Completed the job for which the customer paid $200 in May. Tops in Topiary collected $1,000 in cash once finished.
3) Paid $500 for the rent of July.
4) At the end of June notices that there are no supplies left. Makes a note to buy some in July.
5) At the end of June notices that there are few flyers left (used for advertising) worth $100 and decides to order some for July. Before ordering, the printer (supplier of flyers) asks to be paid $500 of the amount owed for the flyers done in May. Tops in Topiary pays $500.
6) In June collected in cash $3,000 for 3 jobs are done for a total of $4,200, the rest is owed in account by the customers.
7) In June decided to start depreciating the equipment bought for $360 that is expected to last for 3 years.
8) In June 23rd Edward Scissorhands withdrew some cash for personal reasons ($3,000).
Prepare "T" Accounts in ACCRUAL Basis for the period ended on June 30th and then answer the question.
At the end of the accounting period (June 30th, T account after AJE), what is the total of Current Liabilities?
Multiple Choice
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Between $300 and $400
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Between $200 and $299
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Less than $100
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More than $400
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Between $100 and $199
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