On December 31,2011,Krug Company reported total assets of $390,000 prior to the following adjusting entries:
Depreciation expense was $31,000;
Accrued service revenues totaled $29,000;
Accrued expenses totaled $12,000;
Expired insurance which was prepaid totaled $9,000;
Rent revenue earned was $7,000; the rent was prepaid by the tenant and credited to unearned rent revenue.
How much are Krug's total assets after adjusting entries?
A) $350,000
B) $386,000
C) $379,000
D) $374,000
Correct Answer:
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