Randall's Service Company Began Operations on January 1,2019 What Is the December 31,2019 Balance of Randall,Capital?
A) $58,000

question 36

Multiple Choice

Randall's Service Company began operations on January 1,2019.The following Trial Balance was prepared on December 31,2019.Capital contributions during the year were $58,000. Randall's Service Company
Trial Balance
December 31, 2019
$\begin{array}{lc}\text { Account Title}&\text { Debit}&\text { Credit}\\\text { Cash } & \$ 25,400 \\\text { Accounts Receivable } & 5,000 \\\text { Prepaid Rent } & 1,200 \\\text { Office Supplies } & 3,400 \\\text { Land } & 45,000 \\\text { Building } & 16,500 \\\text { Equipment } & 23,000\\\text { Accounts Payable } && \$ 15,000 \\\text { Unearned Revenue } && 5,000 \\\text { Notes Payable } && 25,000 \\\text { Randall, Capital } && 58,000\\\text { Randall, Withdrawals } & 6,700 \\\text { Service Revenue } &&80,300 \\\text { Salaries Expense } & 35,000 \\\text { Rent Expense } & 15.000\\\text { Office Expense } & 6,000 \\\text { Repair Expense } & \underline{1,100}&\underline{\quad\quad} \\\text { Total } & \underline{ \$ 183,300}& \underline{ \$ 183,300} \end{array}$ What is the December 31,2019 balance of Randall,Capital?

• A) $58,000
• B) $51,300
• C) $74,500
• D) $16,500

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Definitions:

ATC

Average Total Cost, which represents the total cost per unit of output produced, calculated by dividing the total cost by the quantity produced.

Break-Even Point

The level of production or sales at which total revenues are equal to total costs, resulting in no net loss or gain.

Variable Cost

Costs that vary directly with the level of production or output, such as materials and labor, in contrast to fixed costs which remain constant regardless of output.

Total Cost

The total of all costs associated with the creation of goods or services, encompassing both fixed and variable expenses.