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Use the following information for questions 21 - 25 regarding Trident River Co. in 2016 (assume this is the first year of operations for Trident

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Use the following information for questions 21 - 25 regarding Trident River Co. in 2016 (assume this is the first year of operations for Trident River Co., and assume Trident River pays cash unless noted otherwise, even if it results in Trident River having a credit balance in cash): 1/1 Issued $100,000 of common stock. 2/1 Paid $9,600 to rent an office for one year. 3/1 Purchased $650 in supplies on account. By end of year, $90 worth of supplies is left. 7/1 Paid $21,200 for equipment, 4-year useful life, $2,000 residual value, straight-line depreciation 8/1 Billed customer $170,000 for services performed. 9/1 Received a $240,000 advance payment from a client for services that will be performed in 2017. 10/1 Received $80,000 from the 8/1 customer sale. 12/1 Paid $400 from the 3/1 purchase of supplies. 12/31 Accrued wages payable to employees of $3,600 21. What are Total Assets (including any contra-asset accounts) reported on the 2016 Balance Sheet? A. $507,290 B. $510,250 C. $498,490 D. $497,690 What is 2016 Net Income? A. $154,640 B. $158,240 C. $394,640 D. $154,550 23. What is the 12/31 adjusting journal entry related to the 7/1 purchase of equipment? A. Debit Depreciation Expense $40,000; Credit Accumulated Depreciation $40,000 B. Debit Depreciation Expense $50,000; Credit Accumulated Depreciation $50,000 C. Debit Depreciation Expense $4,800; Credit Accumulated Depreciation $4,800 D. Debit Depreciation Expense $2,400; Credit Accumulated Depreciation $2,400 24. What are the Total Liabilities reported on the 12/31/16 Statement of Financial Position? A. $240,650 B. $240,250 C. $243,850 D. $250 25. What is the adjusting journal entry at December 31, 2016, related to the 3/1 purchase of supplies? A. Debit Supplies Expense $90; Credit Supplies $90 B. Debit Supplies Expense $560; Credit Supplies $560 C. Debit Supplies Expense S650; Credit Cash $650 D. Debit Supplies S650; Credit Cash $650

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