Before the Closing Entries Were Made at the End of 20X2

question 42

Multiple Choice

Before the closing entries were made at the end of 20X2, the following data were taken from the accounts of Joe Corporation: $$\begin{array} { | l | r | } \hline \text { Share capital } & \$ 70,000 \\\hline \text { Retained earnings, beginning balance January 1, 20X2 } & 100,000 \\\hline \text { Total revenue earned during 20X2 } & 300,000 \\\hline \text { Total expenses incurred during 20X2 } & 200,000 \\\hline \text { Total cash collected during 20X2 } & 40,000 \\\hline\end{array}$$ What is the amount of shareholders' equity that should appear on Joe Corporation's statement of financial position dated December 31, 20X2?

• A) $300,000.
• B) $270,000.
• C) $230,000.
• D) $110,000.

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Definitions:

Tariff

A tax imposed by a government on goods and services imported from other countries to increase their price and encourage or protect domestic industry.

Imported Oil

Oil that is bought from foreign countries to meet domestic consumption demands.

Tariff Revenue

Income earned by a government from imposing taxes on imported goods.

Imported Oil

Oil that is bought from other countries for use, reflecting dependency on foreign sources for energy supply.