Bledsoe Company Received $17,000 Cash from the Issue of Stock

question 18

Multiple Choice

Bledsoe Company received $17,000 cash from the issue of stock on January 1, Year 1. During Year 1, Bledsoe earned $8,500 of revenue on account. The company collected $6,000 cash from accounts receivable and paid $5,400 cash for operating expenses. Based on this information alone, during Year 1,

• A) Total assets increased by $20,100.
• B) Total assets increased by $600.
• C) Total assets increased by $26,100.
• D) Total assets did not change.

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Definitions:

Contractual Agreement

A legally binding contract between two or more parties outlining the terms and conditions of their arrangement.

Financial Statements

Documents that provide an overview of a company's financial condition, including the balance sheet, income statement, and cash flow statement.

Joint Arrangement

An agreement between two or more parties to undertake an economic activity that is subject to joint control.

Controlling Interest

Ownership of a portion of a company that is large enough to influence or control its operations and decisions, typically over 50% of the voting rights.