Andrea Apple Opened Apple Photography on January 1 of the Current

question 143

Multiple Choice

Andrea Apple opened Apple Photography on January 1 of the current year.During January,the following transactions occurred and were recorded in the company's books: 1.Andrea invested $13,500 cash in the business.
2) Andrea contributed $20,000 of photography equipment to the business.
3) The company paid $2,100 cash for an insurance policy covering the next 24 months.
4) The company received $5,700 cash for services provided during January.
5) The company purchased $6,200 of office equipment on credit.
6) The company provided $2,750 of services to customers on account.
7) The company paid cash of $1,500 for monthly rent.
8) The company paid $3,100 on the office equipment purchased in transaction #5 above.
9) Paid $275 cash for January utilities.
Based on this information,the balance in the cash account at the end of January would be:

• A)$41,450.
• B)$12,225.
• C)$18,700.
• D)$15,250.
• E)$13,500.

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Definitions:

Loan Indentures

Formal agreements specifying the terms of a bond or loan, including the interest rate, repayment schedule, and other conditions.

Covenants

Clauses in a contract or loan agreement that stipulate certain actions that must be taken or avoided by the borrower.

Dividend Payments

Periodic payments made by a company to its shareholders out of its profits or reserves.

Dividend Payout Ratio

A financial metric that shows the percentage of earnings a company distributes to shareholders in the form of dividends.