Aaliyah Turner Opened Turner Photography on January 1 of the Current

question 201

Multiple Choice

Aaliyah Turner opened Turner Photography on January 1 of the current year.During January,the following transactions occurred and were recorded in the company's books: 1.Aaliyah invested $13,500 cash in the business in exchange for common stock.
2.Aaliyah contributed $20,000 of photography equipment to the business in exchange for common stock.
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 amount of total stockholders' equity reported on the Balance Sheet at the end of the month would be:

• A)$31,400.
• B)$39,200.
• C)$31,150.
• D)$40,175.
• E)$30,875.

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Definitions:

Merchandise Sale

The transaction of selling goods that are purchased for resale by a business.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on-demand or at a specified future date.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Accrued Interest

The interest that has accumulated on a debt over a period of time but has not yet been paid.