Question

40. The following items are taken from the financial statements of Pelatihan OSN Company for the

year ending December 31, 2016:

Accounts payable 18,000

Accounts receivable 11,000

Accumulated depreciation – equipment 28,000

Advertising expense 21,000

Cash 15,000

Pelatihan OSN, Capital (1/1/16) 102,000

Pelatihan OSN, Drawing 14,000

Depreciation expense 12,000

Insurance expense 3,000

Note payable, due 6/30/17 70,000

Prepaid insurance (12-month policy) 6,000

Rent expense 17,000

Salaries expense 32,000

Service revenue 133,000

Supplies 4,000

Supplies expense 6,000

Equipment 210,000

What is the balance that would be reported for owner’s equity at December 31, 2016?

a. $102,000

b. $130,000

c. $144,000

d. $158,000