Questions -
Q1. During 2015, Archibald Corporation's assets increased $45,000 and the liabilities decreased $10,000. Archibald Cor poration's stockholders' equity at December 31, 2015 was $150,000. What amount was stockholders' equity at January 1, 2015?
A. $205,000
B. $95,000
C. $115,000
D. $185,000
Q2. On April 1, 2015, Athena Company paid $2,400 for a two-year insurance policy with the insurance coverage beginning on that date. As of December 31, 2015, which of the following account balances are correct after adjusting entries have been made?
A. Prepaid insurance $1,200, and Insurance expense $1,200.
B. Prepaid insurance $2,400, and Insurance expense $0.
C. Prepaid insurance $0, and Insurance expense $2,400.
D. Prepaid insurance $1,500, and Insurance expense $900.