Crusoe Waterworks Company Provides Plumbing Services

question 157

Multiple Choice

Crusoe Waterworks Company provides plumbing services.Transactions of Crusoe Waterworks during the first year of operations are given below.
A.The owner,Robin Crusoe,invested $5,000 cash in the company.The cash was deposited in the business checking account.
B.Paid $4,000 cash for equipment to be used for plumbing repairs.
C.Borrowed $26,000 from a local bank and deposited the money in the checking account.
D.Paid $700 rent for the year.
E.Purchased $1,500 of office supplies on account.
F.Completed a plumbing repair project for a local lawyer and received $3,400 cash.
Calculate the amount of total owner's equity after recording the transactions.Assume office supplies of $1,500 are left at the end of the year.

• A)$7,700
• B)$3,400
• C)$5,000
• D)$26,000

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Definitions:

Legal Support

Assistance provided in legal matters, whether through direct legal representation or through advice and information regarding laws and legal processes.

Clinics

Healthcare facilities that provide outpatient medical services, treatments, or consultations.

Law Schools

Educational institutions specializing in legal studies, preparing students for careers in law and legal research.

C-corp

A corporation in the United States that is taxed separately from its owners, known as shareholders, under the subchapter C of the Internal Revenue Code.