Sharon Samson Starts a Plumbing Service Named Reliable Waterworks

question 116

Multiple Choice

Sharon Samson starts a plumbing service named Reliable Waterworks.Selected transactions are described as follows:
A.Sharon deposits $7,000 into a new checking account for the business,recording the capital contribution.
B.Reliable pays $4,000 cash for equipment to be used for plumbing repairs.
C.Reliable borrows $15,000 from a local bank and deposits the money in the checking account.
D.Reliable pays $600 rent for the first month.
E.Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future.
F.Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash.
G.Sharon takes a cash withdrawal of $2,500.
After all of the transactions,what is the amount of total assets?

• A)$25,700
• B)$5,200
• C)$24,200
• D)$20,200

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Definitions:

Frequency Distribution

A statistical analysis showing how often various values occur within a data set, often displayed in a table or graph.

Variance

A statistical measure that represents the spread or dispersion of a set of data points or investment returns from their mean.

Efficient Market

A market hypothesis stating that asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Security Price

The cost or value at which a financial security is bought and sold in the marketplace.