Wiley Hill Opened Hill's Repairs on March 1 of the Current

question 147

Multiple Choice

Wiley Hill opened Hill's Repairs on March 1 of the current year.During March,the following transactions occurred:
1.Wiley invested $25,000 cash in the business in exchange for common stock.
2.Wiley contributed $100,000 of equipment to the business in exchange for common stock.
3.The company paid $2,000 cash to rent office space for the month of March.
4.The company received $16,000 cash for repair services provided during March.
5.The company paid $6,200 for salaries for the month of March.
6.The company provided $3,000 of services to customers on account.
7.The company paid cash of $500 for utilities for the month of March.
8.The company received $3,100 cash in advance from a customer for repair services to be provided in April.
9.The company paid $5,000 in cash dividends.
Based on this information,the total amount of stockholders' equity reported on the balance sheet at the end of March would be:

• A)$133,400.
• B)$130,300.
• C)$125,300.
• D)$8,400.
• E)$13,500.

Understand the implications of economic losses and profits on firm behavior and market structure in the long term.

Grasp the role of entrepreneurship and entrepreneurial judgment in business decisions.

Analyze the reasons behind water supply problems and the role of market solutions.

Understand the dynamics of competitive price-searcher markets including profit maximization, long-term equilibrium, and efficiency scale of output.

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Definitions:

Capital Budget Committee

A capital budget committee is a group of individuals within an organization responsible for reviewing, approving, and overseeing large capital expenditures or investments.

Accounting Rate

The accounting rate refers to the percentage of return on an investment or project, as determined by accounting methods, which does not necessarily take into account the time value of money.

Cash Flows

The total sum of cash and cash-like assets moving into and out of a company.

Payback Method

An investment appraisal technique that calculates the time required to recover the initial investment from the cash inflows generated by the investment.