ROK Corporation incurred the following transactions for 2013: 1. Shareholders invested $10,000 in the corporation in exchange
Question:
ROK Corporation incurred the following transactions for 2013:
1. Shareholders invested $10,000 in the corporation in exchange for $10,000 of common shares.
2. Equipment purchased at a cost of $5,000; he paid $1,000 in cash and agreed to pay the remaining $4,000 in four months.
3. Received $3,500 in cash for services rendered.
4. Paid $1,500 for monthly rent
5. Earned $500 in income on account.
6. Paid $800 for wages
7. Prepaid 1 year insurance for $900
8. Received $700 advance payment for work to be done next month.
9. Made a payment for the purchase of equipment in (2) above in the amount of $1,000
10. Received $300 from customers won on account in (5) above
11. He paid dividends in the amount of $1,200 to shareholders.
Using the above information, answer the following questions:
1. What is the total of the debits and credits in the Trial Balance?
2. What is the balance in the cash account?
3. What is the net income for the period?
4. What is the amount of total assets on the balance sheet?
5.what is the amount of total liabilities on the balance sheet
Expert Answer:
Debits Cash Shareholders investment 10000 Equipment 5000 Rent Expense 1500 Wages Expense 800 Account... View the full answer
