O' Hara Company began operations on December 1, 2011. Presented below is selected information related to O' Hara Company at December 31, 2011.

Office Equipment ₤ 40,000; Utilities Expense ₤ 6,000; Cash 14,000; Accounts Receivable 27,000; Service Revenue 108,000; Wages Expense 47,000; Rent Expense 13,000; Notes Payable 10,000; Accounts Payable 16,000; Dividends 15,000; Share Capital 28,000;

1. At December 31, 2011, assets total
a. £54,000.
b. £70,000.
c. £81,000.
d. £97,000.

2. At December 31, 2011, liabilities total
a. £16,000.
b. £26,000.
c. £37,000.
d. £41,000.

3. Net income for the month of December is
a. £27,000
b. £42,000
c. £56,000
d. £66,000

4. Retained earnings at December 31, 2011 is
a. £15,000
b. £22,000
c. £27,000
d. £55,000

5. Equity at December 31, 2011, is
a. £148,000
b. £121,000
c. £93,000
d. £55,000

1,c

2,a
3,d
4,b
5,b

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To answer these questions, we need to calculate the total assets, total liabilities, net income, retained earnings, and equity at December 31, 2011.

1. Calculation of total assets:
Office Equipment = £40,000
Cash = £14,000
Accounts Receivable = £27,000

Total assets = Office Equipment + Cash + Accounts Receivable
Total assets = £40,000 + £14,000 + £27,000
Total assets = £81,000

Therefore, the correct answer is c. £81,000.

2. Calculation of total liabilities:
Notes Payable = £10,000
Accounts Payable = £16,000

Total liabilities = Notes Payable + Accounts Payable
Total liabilities = £10,000 + £16,000
Total liabilities = £26,000

Therefore, the correct answer is b. £26,000.

3. Calculation of net income:
Service Revenue = £108,000
Wages Expense = £47,000
Utilities Expense = £6,000
Rent Expense = £13,000

Net income = Service Revenue - Wages Expense - Utilities Expense - Rent Expense
Net income = £108,000 - £47,000 - £6,000 - £13,000
Net income = £42,000

Therefore, the correct answer is b. £42,000.

4. Calculation of retained earnings:
Retained earnings = Net income - Dividends
Retained earnings = £42,000 - £15,000
Retained earnings = £27,000

Therefore, the correct answer is c. £27,000.

5. Calculation of equity:
Share Capital = £28,000
Retained Earnings = £27,000

Equity = Share Capital + Retained Earnings
Equity = £28,000 + £27,000
Equity = £55,000

Therefore, the correct answer is d. £55,000.

To determine the answers to these questions, we need to analyze the given information and calculate the totals for assets, liabilities, net income, retained earnings, and equity.

1. To calculate the total assets, we need to add up the values of office equipment, cash, and accounts receivable:
Total Assets = Office Equipment + Cash + Accounts Receivable
Total Assets = £40,000 + £14,000 + £27,000
Total Assets = £81,000

Therefore, the answer is c. £81,000.

2. To calculate the total liabilities, we need to add up the values of notes payable and accounts payable:
Total Liabilities = Notes Payable + Accounts Payable
Total Liabilities = £10,000 + £16,000
Total Liabilities = £26,000

Therefore, the answer is b. £26,000.

3. To calculate net income, we need to subtract total expenses from total revenues:
Net Income = Service Revenue - (Utilities Expense + Wages Expense + Rent Expense)
Net Income = £108,000 - (£6,000 + £47,000 + £13,000)
Net Income = £108,000 - £66,000
Net Income = £42,000

Therefore, the answer is b. £42,000.

4. Retained earnings can be calculated by subtracting dividends from net income:
Retained Earnings = Net Income - Dividends
Retained Earnings = £42,000 - £15,000
Retained Earnings = £27,000

Therefore, the answer is c. £27,000.

5. To calculate equity, we need to add share capital to retained earnings:
Equity = Share Capital + Retained Earnings
Equity = £28,000 + £27,000
Equity = £55,000

Therefore, the answer is d. £55,000.