Chapter $2,$ Chapter $3,$ and Chapter $4$ Additional Prection Prablems $-$ REMEMBER TIIERE ARE MORE PRACTICE PRORLFMS $($FROM TEXTBOOK LISTEDIN THE $-$EXTRA PRACTICE PROBLEMS TO DOB FILE OY CANYAS IN ADOITIOYAL RRACTICE MODULE

Buster Brews signed a contract of March $1^{-1}$ and neceived $$140,000$ in advance of services to be provided to Monster Cruze Ceep. This was theonly amount received in advance from customers in March and April. Buster Breus satisfied $$31,000$ of the performance obligations in March and fulfilled an additional $$2$$$,000$ thy the end of April. The adjusted trial balance at March $31$ reflected the following bulances.

$\backslash$table$[[,$DEBITS,CREDITS$],[$Cash$,75,000\mathrm{.}00,],[$Account Receivable,$105,000\mathrm{.}00,],[$Inventory$,96,000\mathrm{.}00,],[$Equipment$,130,000\mathrm{.}00,],[$Accumulated Depreciation $-$ Equipment,,$26,000,00],[$Accounts Payable,,$87,000\mathrm{.}00],[$Unearned Revenues,,$140,000\mathrm{.}00],[$Note Payable,,$100,000\mathrm{.}00],[$Common Stock,,$$0,000\mathrm{.}00],[$Retained Earnings,,$13,000\mathrm{.}00],[$Revenues$,,210,000\mathrm{.}00],[$Selling Expenses,$105,000\mathrm{.}00,],[$Administrative Expenses,$115,000\mathrm{.}00,],[$TOTALS$,625,000,625,000]]$

Based en the dats, evalume the following statements related to the March $31$st$,$ adjusted trial balance and select the correct response.

Net Income was overstated by $$140,000$ Net Income was understated by $$25,000$

$5.$ Total Stockhotders' Equity was understated by $531,000$

$5.$ Todal Liabilities was overstated by $$56,000$

e$.$ Total Expenses was overstated by $$31,000$

NI

$A81=L-S$