Lori Nichols Started an Engineering Firm, Engineering Enterprises P

question 7

Multiple Choice

Lori Nichols started an engineering firm, Engineering Enterprises P.C. During its first month of operations, the following transactions were completed: I. Lori invested $35,000 in the business, which in turn issued common stock to her.
II. The business purchased equipment on account for $10,000.
III. The business provided engineering services on account, $13,000.
IV. The business paid salaries to the receptionist, $4000.
V. The business received cash from a customer as payment on account $11,000.
VI. The business borrowed $13,000 from the bank, issuing a note payable.
At the end of the month, cash equals:

• A)$35,000.
• B)$44,000.
• C)$55,000.
• D)$86,000.

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Definitions:

Federal Trade Commission Act

An Act of Congress that established the Federal Trade Commission (FTC), aimed at preventing unfair competition practices and deceptive consumer acts.

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