Andrea Apple Opened Apple Photography, Inc

question 78

Multiple Choice

Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Andrea, the stockholder, 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:

Fixed Expenses

Outlays that stay the same no matter the amount of goods produced or sold, encompassing rent, payroll, and insurance costs.

Actual Sales

The total revenue a company generates from selling its goods or services, minus any returns or refunds.

Fixed Expenses

Regularly occurring costs that remain constant in total regardless of changes in activity within a relevant period.

Contribution Margin

The difference between a company's sales revenue and its variable costs, serving as a measure of the profitability of individual products.