Use the Following Data to Determine the Total Amount of Working

question 20

Multiple Choice

Use the following data to determine the total amount of working capital. Koonce Office Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 195,000 & \text { Accounts payable } & \$ 210,000 \\\text { Accounts receivable } & 150,000 & \text { Salaries and wages payable } & 30,000 \\\text { Inventory } & 165,000 & \text { Mortgage payable } & 240,000 \\\text { Prepaid insurance } & 90,000 & \text { Total liabilities } & \$ 480,000\\\text { Stock investments } & 255,000 \\\text { Land } & 270,000 \\\text { Buildings } \quad \$ 315,000& &\text { Common stock }&\$360,000\\\text { Less: Accumulated }&&\text { Retained earnings }&750,000\\\text { depreciation }\quad(60,000) &255,000&\text { Total stockholders' equity }&\$1,110,000\\\text { Trademarks } & 210,000 &\text { Total liabilities and }\\\text { Total assets } & \$ 1,590,000&\text { stockholders' equity }&\$1,590,000\end{array}$

• A)$360,000
• B)$390,000
• C)$130,000
• D)$180,000

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Definitions:

Weigh

The action of determining the mass or weight of an object using scales or other measuring instruments.

Compound Journal Entry

A journal entry that affects more than two accounts.

Fiscal Year

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Accounting Period

A specific time period for which financial information is reported, commonly a year or a quarter.