Refer to the Following Adjusted Trial Balance There Were No New Capital Contributions During the Year

question 112

Multiple Choice

Refer to the following adjusted trial balance. $$\begin{array} { | l | r | r | } \hline \text { Accounts } & { \text { Debit } } & { \text { Credit } } \\\hline \text { Cash } & \$ 1,700 & \\\hline \text { Accounts Receivable } & 8,600 & \\\hline \text { Office Supplies } & 400 & \\\hline \text { Equipment } & 28,100 & \\\hline \text { Accumulated Depreciation-Equipment } & & \$ 2,000 \\\hline \text { Accounts Payable } & & 1,200 \\\hline \text { Salaries Payable } & & 950 \\\hline \text { Unearned Revenue } & & 450 \\\hline \text { Smith, Capital } & & 3,800 \\\hline \text { Smith, Withdrawals } &1,000 & \\\hline \text { Service Revenue } & &55,600 \\\hline \text { Salaries Expense } &20,000\\\hline \text { Supplies Expense } & 2,200 \\\hline \text { Depreciation Expense- Equipment } &2,000\\\hline \text { Total } & \$ 64,000 &\$ 64,000 \\\hline\end{array}$$ There were no new capital contributions during the year.What will the balance of the Smith,Capital
Account be after the closing entries are posted?

• A) $34,200
• B) $31,400
• C) $35,200
• D) $32,400

Analyze the concept of opportunity cost in decision-making processes.

Understand the application of differential analysis in various managerial decisions including product discontinuation and asset replacement.

Evaluate make-or-buy decisions in the context of manufacturing processes.

Grasp the influence of production bottlenecks on pricing strategies and product prioritization.

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Definitions:

Sinking Fund Deposits

Money regularly set aside by a company to repay a debt or replace an asset in the future.

Compounded Annually

An investment or loan interest calculation method where interest is added to the principal sum at the end of each year, with future interest then earned on the new total.

Present Value

Today's value of future cash flows or a lump sum, calculated using an established return rate.

Discounted

The process of determining the present value of a payment or a series of payments made in the future, using a specific discount rate.