Post Utme Afe Babalola University 2017 Accounting Question 8

Practice objective / multiple choice question 8 from the 2017 Post Utme Afe Babalola University Accounting examination.

Post Utme Afe Babalola University 2017 Accounting Objective / Multiple Choice
Question 8 POST_UTME_AFE_BABALOLA_UNIVERSITY • 2017 • ACCOUNTING • objective

A company's trial balance as at 31st December 20X7 is as follows: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Bank £ 2,000, Cash £ 1,000, Common Stock £ 50,000, Dividends £ 5,000, Equipment £ 20,000, Interest Expense £ 2,000, Interest Income £ 1,000, Net Income £ 10,000, Prepaid Rent £ 5,000, Salaries Expense £ 10,000, Sales £ 50,000, Sales Returns £ 5,000, Taxes Payable £ 2,000, Utilities Expense £ 2,000. Prepare the balance sheet as at 31st December 20X7.

Answer Options

Correct Answer A. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000
B. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 21,000 Total Equity £ 71,000
C. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000
D. Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 21,000 Total Equity £ 71,000
Correct Answer
A
Correct Option:
Assets: Cash £ 1,000 Accounts Receivable £ 5,000 Prepaid Rent £ 5,000 Equipment £ 20,000 Bank £ 2,000 Total Assets £ 33,000 Liabilities: Accounts Payable £ 10,000 Taxes Payable £ 2,000 Total Liabilities £ 12,000 Equity: Common Stock £ 50,000 Retained Earnings £ 11,000 Total Equity £ 61,000

About This Question

This is Post Utme Afe Babalola University 2017 Accounting Question 8. It is one of the objective questions from the 2017 Post Utme Afe Babalola University Accounting examination.

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