At the End of Its First Month of Operations,Michael's Consulting

question 81

Multiple Choice

At the end of its first month of operations,Michael's Consulting Services reported net income of $25,000.They also had account balances of: Cash,$18,000; Office Supplies,$2,000 and Accounts Receivable $10,000.The sole stockholder's total investment in exchange for common stock for this first month was $5,000.There were no dividends in the first month. Calculate the amount of total equity to be reported on the balance sheet at the end of the month.

• A)$30,000
• B)$25,000
• C)$20,000
• D)$5,000
• E)$7,000