Marvin Services Corporation Had the Following Accounts and Balances If the Balance of the Buildings Account Was $40,000 and

question 126

Multiple Choice

Marvin Services Corporation had the following accounts and balances: $$\begin{array} { l r l r } \text { Accounts payable } & \$ 30,000 & \text { Equipment } & \$ 35,000 \\\text { Accounts receivable } & 5,000 & \text { Land } & 35,000 \\\text { Buildings } & ? & \text { Unearned service revenue } & 10,000 \\\text { Cash } & 15,000 & \text { Total stockholders' equity } & ?\end{array}$$ If the balance of the Buildings account was $40,000 and $10,000 of Accounts Payable were paid in cash, what would be the total liabilities and stockholders' equity?

• A)$90,000
• B)$78,000
• C)$80,000
• D)$120,000

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Definitions:

Shares Issued

The total number of shares that have been allocated and distributed to shareholders by a company, representing ownership in the company.

Stock Split

A corporate action that increases the number of shares in a company by dividing each share, which in turn reduces its price, making the stock more accessible to investors.

Stock Dividend

A dividend payment made in the form of additional shares rather than a cash payout, increasing the number of shares owned by shareholders.

Prepaid Insurance

The portion of insurance premiums that has been paid in advance and is recognized as an asset on the balance sheet until the coverage period elapses.