40. The following items are taken from the financial statements of Pelatihan OSN Company for the
year ending December 31, 2016:
Accounts payable 18,000
Accounts receivable 11,000
Accumulated depreciation – equipment 28,000
Advertising expense 21,000
Cash 15,000
Pelatihan OSN, Capital (1/1/16) 102,000
Pelatihan OSN, Drawing 14,000
Depreciation expense 12,000
Insurance expense 3,000
Note payable, due 6/30/17 70,000
Prepaid insurance (12-month policy) 6,000
Rent expense 17,000
Salaries expense 32,000
Service revenue 133,000
Supplies 4,000
Supplies expense 6,000
Equipment 210,000
What is the balance that would be reported for owner’s equity at December 31, 2016?
a. $102,000
b. $130,000
c. $144,000
d. $158,000
To find the balance that would be reported for owner's equity at December 31, 2016, we need to calculate the total of Pelatihan OSN, Capital and Pelatihan OSN, Drawing.
1. Start with the Pelatihan OSN, Capital (1/1/16) which is given as $102,000.
2. Subtract the Pelatihan OSN, Drawing which is given as $14,000.
3. The result will give you the balance of owner's equity.
Calculating the balance of owner's equity:
$102,000 - $14,000 = $88,000
Therefore, the correct answer is not provided in the given options.