The Following Items Are Taken from the Financial Statements of the Freight

question 29

Multiple Choice

The following items are taken from the financial statements of the Freight Service for the year ending December 31 2016: $\begin{array}{ll}\text { Accounts payable } & 19,000 \\\text { Accounts receivable } & 13,000 \\\text { Accumulated depreciation-equipment } & 26,000 \\\text { Advertising expense } & 21,200 \\\text { Cash } & 15,000\\\text { Owner's capital (1/1/16) } & 104,000 \\\text { Owner's drawings } & 11,000 \\\text { Depreciation expense } & 12,000 \\\text { Insurance expense } & 3,800 \\\text { Note payable, due } 6 / 30 / 17 & 72,000 \\\text { Prepaid insurance (12-month policy) } & 7,200\end{array}$ $\begin{array} { l r } \text { Rent expense } & 16,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 135,000 \\\text { Supplies } & 5,000 \\\text { Supplies expense } & 6,000 \\\text { Equipment } & 210,000\end{array}$
What is the balance that would be reported for owner's equity at December 31 2016?

• A) $159000
• B) $148000
• C) $137000
• D) $104000

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Definitions:

Elliot Aronson

An influential psychologist known for his research on social influence, group dynamics, and the theory of cognitive dissonance.

Theory of Planned Behavior

A psychological theory that links one's beliefs and attitudes towards behaviors to their actual behavioral intentions and actions.

Theory of Reasoned Action

A theory that suggests individuals' behavioral intentions are shaped by their attitudes toward the behavior and subjective norms surrounding it.

Ajzen

Refers to Icek Ajzen, a prominent psychologist known for his work on the Theory of Planned Behavior, which explains how attitudes, subjective norms, and perceived control over behavior influence intentions and actions.