On December 31,2011,Krug Company Reported Total Assets of $390,000 Prior

question 51

Multiple Choice

On December 31,2011,Krug Company reported total assets of $390,000 prior to the following adjusting entries:
Depreciation expense was $31,000;
Accrued service revenues totaled $29,000;
Accrued expenses totaled $12,000;
Expired insurance which was prepaid totaled $9,000;
Rent revenue earned was $7,000; the rent was prepaid by the tenant and credited to unearned rent revenue.
How much are Krug's total assets after adjusting entries?

• A)$350,000
• B)$386,000
• C)$379,000
• D)$374,000

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Definitions:

Effective Price Ceiling

A government-imposed limit on how high the price of a product can be charged, set below the market equilibrium to be effective.

Equilibrium Price

The price at which the quantity of a good or service demanded meets the quantity supplied, resulting in a stable market condition.

Surplus

An excess of production or supply over demand, often resulting in lower prices or wasted resources.

Demand for Electronic Readers

The consumer desire or market requirement for digital devices designed for reading e-books and similar electronic documents.