Benedict Company Compiled the Following Financial Information as of December

question 224

Multiple Choice

Benedict Company compiled the following financial information as of December 31, 2014: $$\begin{array} { l r } \text { Service revenue } & \$ 560,000 \\\text { Common stock } & 120,000 \\\text { Equipment } & 160,000 \\\text { Operating expenses } & 500,000 \\\text { Cash } & 140,000 \\\text { Dividends } & 40,000 \\\text { Supplies } & 20,000 \\\text { Accounts payable } & 80,000 \\\text { Accounts receivable } & 60,000 \\\text { Retained earnings, } 1 / 1 / 14300,000\end{array}$$ Benedict's stockholders' equity on December 31, 2014 is

• A) $420,000.
• B) $440,000.
• C) $320,000.
• D) $480,000.

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Definitions:

Second Continental Congress

A convention of delegates from the Thirteen Colonies that started meeting in 1775, during the American Revolution, which eventually declared independence from Britain.

Commander-In-Chief

The role of the President of the United States as the supreme commander of the military forces of the country and of the state National Guard units when they are called into federal service.

Establishing an Army

The act of organizing and instituting a military force capable of defending a country or participating in military operations.

First Draft

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