Warren Enterprises Began Operations During Year 1

question 145

Multiple Choice

Warren Enterprises began operations during Year 1. The company 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. What is the balance of the Retained Earnings account as of December 31, Year 1?

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

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Definitions:

Psychic Energy

In psychoanalytic theory, the force that drives the functioning of the personality, channeled through various structures of the mind.

Anticipation

The act of looking forward or predicting a future event based on current knowledge or expectations.

Reconstruction

The process of rebuilding, reforming, or remaking something, often used in psychological contexts to refer to therapies aimed at reconstructing thought patterns or perspectives.

Test Against Reality

involves verifying ideas, theories, or perceptions by comparing them with factual, real-world occurrences or principles.