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

question 48

Multiple Choice

Wiley Hill opened Hill's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books:

Wiley invested $25,000 cash in the business.
Wiley contributed $100,000 of equipment to the business.
The company paid $2,000 cash to rent office space for the month of March. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month of March.
The company provided $3,000 of services to customers on account.
The company paid cash of $500 for utilities for the month of March.
The company received $3,100 cash in advance from a customer for repair services to be provided in April.
Wiley withdrew $5,000 for his personal use from the company.
Based on this information, the balance in Wiley Hill, Capital reported on the Statement of Owner's Equity at the end of March would be:

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

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Definitions:

Asset Account

An account on a company's balance sheet that represents a resource with economic value that is expected to provide future benefit.

Supplies

Items or materials used in the daily operations of a business.

Unearned Revenue

Money received by a business for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.

Services Revenue

Revenue generated from providing services, as opposed to selling goods or products.