Warren Enterprises Had the Following Events During Year 1:The Business

question 137

Multiple Choice

Warren Enterprises had the following events during Year 1:The business issued $40,000 of common stock to its stockholders.The business purchased land for $24,000 cash.Services were provided to customers for $32,000 cash.Services were provided to customers for $10,000 on account.The company borrowed $32,000 from the bank.Operating expenses of $24,000 were incurred and paid in cash.Salary expense of $1,600 was accrued.A dividend of $8,000 was paid to the stockholders of Warren Enterprises. Assuming the company began operations during Year 1, what is the amount of retained earnings as of December 31, Year 1?

• A) $10,000
• B) $8,400
• C) $16,400
• D) $42,000

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Definitions:

Theoretical Orientation

The fundamental philosophical approach that guides a therapist’s or researcher’s understanding of clients and their problems, as well as the methods employed to help them.

Practicing Psychologists

Licensed professionals who apply psychological principles and techniques to assess and treat mental health issues and promote well-being.

Eclectic

Eclectic describes an approach or style that combines elements from various sources or disciplines, often used in contexts like therapy, decorating, or philosophy.

ECT

Electroconvulsive Therapy, a medical treatment most commonly used for severe major depression or bipolar disorder that involves electrically induced seizures.