On December 31,2011,Krug Company reported stockholders' equity of $280,000 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 is Krug's stockholders' equity after adjusting entries?
A) $280,000
B) $262,000
C) $295,000
D) $264,000
Correct Answer:
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