Johnson Waterworks Company Provides Plumbing Services

question 70

Multiple Choice

Johnson Waterworks Company provides plumbing services.The company is a sole proprietorship.Transactions during the first year of operations are provided below.
a) The owner,Mitchell Johnson,contributed $14,000 cash in exchange for capital.
b) Paid $1,100 for equipment to be used for plumbing repairs.
c) Borrowed $13,000 from a local bank and deposited the money in the checking account.
d) Paid $300 in rent for the year.
e) Paid $200 for plumbing supplies to be used on various jobs next year.
f) Completed a plumbing repair for a law firm and received $3,300.
Calculate the amount of total assets at the end of the first year.Assume the plumbing supplies of $200 are left at the end of the year.

• A) $1,300
• B) $1,100
• C) $27,000
• D) $30,000