Yowell Company Began Operations on January 1, Year 1

question 29

Multiple Choice

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $40,000 2) borrowed $25,000 from its bank
3) provided consulting services for $39,000 cash
4) paid back $15,000 of the bank loan
5) paid rent expense for $9,000
6) purchased equipment for $12,000 cash
7) paid $3,000 dividends to stockholders
8) paid employees' salaries of $21,000
What is Yowell'snotes payable balance at the end of Year 1?

• A) $0
• B) $25,000
• C) ($15,000)
• D) $10,000

---

Definitions:

Intuitive Judgment

The ability to make decisions or draw conclusions in the absence of explicit reasoning or comprehensive analysis, often based on experience and gut feelings.

Condition Of Risk

A situation or an environment where there is a potential for loss or damage, and outcomes are uncertain.

Today's Managers

Modern-day professionals responsible for directing and overseeing the operations and strategies of organizations.

Dealing With Risk

Strategies and practices for identifying, assessing, and managing potential risks to minimize their impact on an organization.