On June 30 of the Current Year,the Assets and Liabilities

question 124

Multiple Choice

On June 30 of the current year,the assets and liabilities of Phoenix,Inc.are as follows: Cash $20,500; Accounts Receivable,$7,250; Supplies,$650; Equipment,$12,000; Accounts Payable,$9,300.What is the amount of owner's equity as of June 30 of the current year?

• A)$8,300
• B)$13,050
• C)$20,500
• D)$31,100
• E)$40,400

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Definitions:

Invoice Price

The price of goods as listed on the invoice, typically before any discounts, taxes, or additional charges.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including materials, labor, and overhead.

Payment Terms

The conditions under which a seller will complete a sale, typically specifying the period allowed to a buyer to pay off the amount due.