O' Hara Company began operations on December 1, 2011. Presented below is selected information related to O' Hara Company at December 31, 2011.

Office Equipment ₤ 40,000; Utilities Expense ₤ 6,000; Cash 14,000; Accounts Receivable 27,000; Service Revenue 108,000; Wages Expense 47,000; Rent Expense 13,000; Notes Payable 10,000; Accounts Payable 16,000; Dividends 15,000; Share Capital 28,000;

1. At December 31, 2011, assets total
a. £54,000.
b. £70,000.
c. £81,000.
d. £97,000.

2. At December 31, 2011, liabilities total
a. £16,000.
b. £26,000.
c. £37,000.
d. £41,000.

3. Net income for the month of December is
a. £27,000
b. £42,000
c. £56,000
d. £66,000

4. Retained earnings at December 31, 2011 is
a. £15,000
b. £22,000
c. £27,000
d. £55,000

5. Equity at December 31, 2011, is
a. £148,000
b. £121,000
c. £93,000
d. £55,000

2 answers

1,c
2,a
3,d
4,b
5,b

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