1-At the beginning of the year, ABC Company’s liabilities equal $105,000. During the year, assets increased by $20,000 and at the end of the year assets equal $250,000. Liabilities increase by $35,000 during the year. Calculate the amount of equity at the beginning of the year.$230,000$140,000$110,000$170,000$125,0002-At the beginning of the year, ABC Company’s liabilities equal $75,000. During the year, assets increased by $80,000 and at the end of the year assets equal $250,000. Liabilities decrease by $25,000 during the year. Calculate the amount of equity at the end of the year.$50,000$95,000$105,000$170,000$200,0003-On January 31, Harrington Corporation, a consulting company, had accounts receivable in the amount of $10,000, During February, payments from customers on account totaled $5,000. At the end of February, Harrington had accounts receivable in the amount of $12,000. What was the amount of consulting services provided to customers on credit during the month of February?$2,000$3,000$7,000$27,000Cannot be determined4-n July 12, Ron Truro (owner of Truro Excavating) completed work for a customer on account in the amount of $4,300. The journal entry necessary to record this transaction is:debit Account Payable for $4,300; credit Service Revenue for $4,300debit Account Receivable for $4,300; credit Unearned Revenue for $4,300debit Service Revenue for $4,300; credit Account Receivable for $4,300debit Account Receivable for $4,300; credit Service Revenue for $4,300debit Service Revenue for $4,300; credit Account Payable for $4,3005-On July 30, Ron Truro (owner of Truro Excavating) received an advance payment from a customer in the amount of $5,000; the work will be completed in August. The journal entry necessary to record this transaction is:debit Cash for $5,000; credit Unearned Revenue for $5,000debit Service Revenue for $5,000; credit Cash for $5,000debit Unearned Revenue for $5,000; credit Cash for $5,000debit Cash for $5,000; credit Service Revenue for $5,000debit Account Receivable for $5,000; credit Unearned Revenue for $5,0006-GAAP is based onthe accrual basisboth the cash basis and the accrual basisthe cash basisneither the cash basis nor the accrual basis
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