Robinson Starts a Plumbing Service Named Crusoe Waterworks

question 72

Multiple Choice

Robinson starts a plumbing service named Crusoe Waterworks. Transactions of Crusoe Waterworks during the first year of operations are given below:

• A) Robinson deposited $7,000 into a new checking account for the business and recorded the capital contribution.
• B) Paid $4,000 cash for equipment to be used for plumbing repairs.
• C) Borrowed $30,000 from a local bank and deposited the money in the checking account.
• D) Paid $800 rent for the year.
• E) Purchased $900 of office supplies on account.
• F) Completed a plumbing repair project for a local lawyer and received $3,500 cash.

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