Question

As of December 31, 2013, Morley Company has liabilities of $5,000 and stockholders' equity of $7,000. It received revenues of $23,000 during the year ended December 31, 2013. What are the assets for Morley Company as of December 31, 2013?

Select one:
a. $2,000.
b. $35,000.
c. $12,000.
d. $25,000.

Answer 1

The assets for Morley Company are $12,000

Step-by-step explanation:

The assets for Morley Company can be calculated using the accounting equation: Assets = Liabilities + Stockholders' Equity. Given that liabilities are $5,000 and stockholders' equity is $7,000, the calculation would be: Assets = $5,000 + $7,000 = $12,000. Therefore, the answer is option c. $12,000.