Allen Marks Is the Sole Owner and Operator of Great

question 28

Multiple Choice

Allen Marks is the sole owner and operator of Great Marks Company. As of the end of its accounting period, December 31, 2013, Great Marks Company has assets of $940,000 and liabilities of $300,000. During 2014, Allen Marks invested an additional $73,000 and withdrew $33,000 from the business. What is the amount of net income during 2014, assuming that as of December 31, 2014, assets were $995,000, and liabilities were $270,000?

• A) $ 45,000
• B) $ 50,000
• C) $106,000
• D) $370,000

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Definitions:

Maturity Date

The date on which the principal amount of a loan, bond, or other financial instrument becomes due and payable.

Pledges Receivables

Amounts promised to be paid by donors to a fundraising organization or a charitable cause.

Pledge Fee

A charge assessed for the service of securing a loan or guarantee, commonly associated with loans or financing agreements.

Dishonoring Note

The failure to pay a promissory note when it comes due.