PART II Points $-2$ @ $10$ Points Each

The Horace Manore Company $($which had been incorporated in $1997)$ experienced the

events listed below during the year ended December $31,2022$:

Issued additional shares of capital stock for $$7,500.$

Purchased equipment costing $$6,000.$ A cash payment of $$2,000$ was made on de$-$

livery of the equipment and a note for $$4,000$ was signed for the remaining balance of

the purchase price.

Purchased $$30,000$ of inventory $($merchandise for resale$)$ on account.

Sold inventory costing $$26,000$ for $$38,000$; all sales were on account.

Collected $$29,000$ on account $($i$.$e$.,$ against accounts receivable$).$

Incurred miscellaneous operating expenses amounting to $$6,400($all on account$).$

Paid $$32,000$ on account $($i$.$e$.,$ against accounts payable$).$

Recognized $$1,600$ of depreciation expense for the year.

Declared and paid dividends of $$1,200.$

No other transactions or events occurred during the year.

After accounting for the above events, indicate whether the following statements are "True"

or "False" by circling your answers below $($each answer is worth $2$ points$)$:

A$)$ T F Total assets increased by $$19,900$ during the year $2022.$

B$)$ T Net assets increased by $$10,300$ during the year $2022.$

C$)$ T Nonmonetary assets increased by $$10,000$ during the year $2022.$

D$)$ T F Retained eamings increased by $$2,800$ during the year $2022.$

E$)$ T F Net income for the year $2022$ was $$4,000.$