At the end of Year 1, Clayton Company had $7,000 of cash, $8,500 land, $2,500 of...

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At the end of Year 1, Clayton Company had $7,000 of cash, $8,500 land, $2,500 of liabilities, $4,000 of common stock, and $9,000 of retained earnings. During Year 2, Clayton experienced the following events. 1. Borrowed $2,500 cash. 2. Earned $7,500 of cash revenue. 3. Paid $5,000 of cash expenses. 4. Paid $6,000 cash to purchase land. Based on this information the amount of total assets, total liabilities, and retained earnings appearing on the Year 2 financial statements is Total Liabilities $ 6,500 $ 5,000 $ 2,500 $ 2,500 A. B. C. D. Total Assets $ 6,000 $ 20,500 $ 13,000 $ 13,000 Retained Earnings $ 2,500 $ 11,500 $ 11,500 $ 6,500 At the end of Year 1, Clayton Company had $7,000 of cash, $8,500 land, $2,500 of liabilities, $4,000 of common stock, and $9,000 of retained earnings. During Year 2, Clayton experienced the following events. 1. Borrowed $2,500 cash. 2. Earned $7,500 of cash revenue. 3. Paid $5,000 of cash expenses. 4. Paid $6,000 cash to purchase land. Based on this information the amount of total assets, total liabilities, and retained earnings appearing on the Year 2 financial statements is Total Liabilities $ 6,500 $ 5,000 $ 2,500 $ 2,500 A. B. C. D. Total Assets $ 6,000 $ 20,500 $ 13,000 $ 13,000 Retained Earnings $ 2,500 $ 11,500 $ 11,500 $ 6,500

Answer rating: 100% (QA)

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