Question

Leviathan Global, Inc. (LGI) provides organizational services to opera companies and symphonies. LGI has hired you to prepare its financial statements. Osvaldo Garza, Chief Executive Officer, and 60% shareholder in LGI, has a Master of Fine Arts from the Julliard School in New York, no accounting education or experience, and provided you with the following data: LGI was sued in 2019 from breach of contract. LGI is accused of providing substandard seating at a concert and the petitioner is suing for $100,000 in damages. As of December 31, 2019, the case was still be adjudicated Osvaldo had a 401K balance of $450,000 as of December 31, 2019. Osvaldo purchased a used Tesla Roadster in 2019 for $80,000. Osvaldo gives you a typed list of LGl income information, expense information, assets and liabilities on December 31, 2019: Accounts Payable $122,000 Land $900,000 Accounts Receivable $313,500 Misc. Expense $129,500 Cash $530,500 Office Expense $630,000 Common Stock $1,000,000 Supplies $ 33,500 Fees Earned $2,632,000 Wages Expense $1,317,000 Retained Earnings on January 1, 2019, were $300,000. During 2019, LGI paid $200,000 in dividends.

Answer 1

86.)	Liabilities on December 31,2019
	Accounts payable	$ 122,000
	Correct answer is option 3 .
87.)	Total Stockholder's Equity
		Amount $
	Common Stock	1,000,000
	Add :Opening Retained earnings	300,000
	Add: Net income	555,500	(2,632,000 - 1,317,000 - 129,500 - 630,000 )
	Less: Dividends paid	200,000
	Total Stockholder's Equity	1,655,500
	on December 31,2019
	Correct answer is option 2 .
88.)	Total Liabilties & Stockholder's Equity	$ 1,777,500	(122,000 + 1,655,500 )
	on December 31,2019
	Correct answer is option 3 .

89.)	Yes, another company would pay $313,500 for these receivables.
	Correct answer is option 1 .