Petras Company Engaged in the Following Transactions During 2012, Its

question 22

Multiple Choice

Petras Company engaged in the following transactions during 2012, its first year in operations: (Assume all transactions are cash transactions)
1) Acquired $950 cash from the issue of common stock.
2) Borrowed $420 from a bank.
3) Earned $600 of revenues.
4) Paid expenses of $250.
5) Paid a $50 dividend.
During 2013, Petras engaged in the following transactions: (Assume all transactions are cash transactions)
1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750.
4) Incurred expenses of $360.
5) Paid dividends of $100.
The amount of total equity on Petras' 2012 balance sheet is

• A) $1,250.
• B) $900.
• C) $300.
• D) $1,300.

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Definitions:

Cross-tolerance

A phenomenon where tolerance to the effects of a certain drug produces tolerance to another drug, usually because both drugs are similar in their effects or mechanisms of action.

Polysubstance Disorder

A condition characterized by the misuse of multiple substances or drugs, either simultaneously or at different times.

Tolerance

The process by which the body increasingly adapts to a substance (like alcohol or drugs), requiring larger amounts to achieve the original effect.

Drugs

Substances that have physiological effects upon ingestion or introduction into the body, often used medicinally but also for recreation or performance enhancement.