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Listed below are the accounts for Brynny, Inc. at December 31 and their balances. The December 31, 20X2 amounts listed for the Income Statement accounts are before the closing entry has been posted. The amounts for the Balance Sheet accounts are after the closing entry has been posted

	20X2	20X1
Cash	75,000	35,000
Accounts Receivable	155,000	62,000
Allowance for Doubtful Accounts	5,000	2,000
Inventory	72,000	35,000
Prepaid Insurance	4,000	5,000
Building	100,000	100,000
Land	60,000	60,000
Equipment	120,000	100,000
Accumulated Depreciation	95,000	71,000
Security Deposit	10,000	5,000
Accounts Payable	80,000	120,000
Salaries Payable	13,000	10,000
Taxes Payable	4,000	8,000
Note Payable	50,000	60,000
Common Stock	210,000	70,000
Retained Earnings	139,000	61,000
Advertising Expense	8,000
Cost of Goods Sold	380,000
Depreciation Expense	24,000
Interest Expense	5,000
Bad Debt Expense	3,000
Rent Expense	36,000
Sales	780,000
Salary Expense	200,000
Tax Expense	24,000
Utilities Expense	12,000

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Brynns beginning balance in Retained Earnings was $61,000 and the beginning Common Stock balance was $70,000. The company had 7,000 shares of common stock outstanding at the beginning of the year. The corporation issued 4,000 shares of common stock on March 31st, 20X2. The Note Payable requires annual payments of $10,000 on principal plus interest at 10% on December 31st. Hint: You might want to draft the financial statements on the back sides of your exam pages.

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The Total Current Liabilities at December 31, 20X2 was

Multiple Choice

$ 97,000

$ 137,000

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