Andrea Apple Opened Apple Photography on January 1 of the Current

question 93

Multiple Choice

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: • Andrea invested $13,500 cash in the business in exchange for common stock.
• Andrea contributed $20,000 of photography equipment to the business in exchange
For common stock.
• The company paid $2,100 cash for an insurance policy covering the next 24 months.
• The company received $5,700 cash for services provided during January.
• The company purchased $6,200 of office equipment on credit.
• The company provided $2,750 of services to customers on account.
• The company paid cash of $1,500 for monthly rent.
• The company paid $3,100 on the office equipment purchased in transaction #5 above.
• 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:

GAAP

Generally Accepted Accounting Principles, a common set of accounting principles, standards, and procedures under which financial statements are prepared, applicable within a specific jurisdiction or country.

Asset Returns

Represents the earnings generated from an investment in assets, typically expressed as a percentage of the original investment cost.

Net Income Volatility

Net income volatility refers to the degree of variation in a company's net income over time, indicating the unpredictability of earnings.

Cumulative Unrecognized Gains

Gains not yet recognized in financial statements, typically relating to investments or assets.