The Smith Corp

question 109

Multiple Choice

The Smith Corp.began business this year and entered into the following transactions during the year.The company issued common stock in exchange for cash of $20,000 from stockholders,borrowed $10,000 from a bank,bought $3,000 of inventory on account,and purchased $8,000 of equipment by paying $3,000 in cash and issuing a note for the remainder.What is the amount of total assets to be reported on the balance sheet at the end of the year?

• A) $26,000
• B) $30,000
• C) $32,000
• D) $38,000

---

Definitions:

Equilibrium Price

The price at which the quantity of a good or service supplied equals the quantity demanded, resulting in market balance.

Equilibrium

A state in a market or economy where supply equals demand, and there is no incentive for change under current conditions.

Coconuts

Often used in economic models and examples, referring to a simplistic commodity to illustrate principles of trade, investment, or resource allocation.

Equilibrium

A condition or state in which economic forces such as supply and demand are balanced, resulting in a stable market.