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O' Hara Company

question 193

Multiple Choice

Use the following information for questions
O' Hara Company began operations on December 1, 2011.Presented below is selected information related to O' Hara Company at December 31, 2011.  Office Equipment £40,000 Utilities Expense £6,000 Cash 14,000 Accounts Receivable 27,000 Service Revenue 108,000 Wages Expense 47,000 Rent Expense 13,000 Notes Payable 10,000 Accounts Payable 16,000 Dividends 15,000 Share Capital 28,000\begin{array} { l r l r } \text { Office Equipment } & £ 40,000 & \text { Utilities Expense } & £ 6,000 \\\text { Cash } & 14,000 & \text { Accounts Receivable } & 27,000 \\\text { Service Revenue } & 108,000 & \text { Wages Expense } & 47,000 \\\text { Rent Expense } & 13,000 & \text { Notes Payable } & 10,000 \\\text { Accounts Payable } & 16,000 & \text { Dividends } & 15,000 \\\text { Share Capital } & 28,000 & &\end{array}
-Retained earnings at December 31, 2011 is

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Definitions:

Legally Sufficient

Describes evidence or information that meets the established legal standards to support a claim or decision in court.

Consideration

The exchange of something of value in return for the promise or service of another party, a fundamental component of a valid contract.

Promise

A declaration or assurance by one party to another that a particular action or condition will occur or be met, potentially forming the basis of a contractual obligation.

Consideration

Something of value that is promised, given, or done that persuades a party to enter into a contract, making the contract legally enforceable.

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