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

---

Definitions:

Chemical Sense

A type of sensory perception, including taste and smell, that allows organisms to detect chemical substances in their environment.

Vestibular Sense

The sensory system that contributes to balance and spatial orientation by sensing gravity and motion.

Kinesthesis

The sense of movement and body position, allowing individuals to be aware of their limbs and body parts in space without having to see them.

Audition

Audition, or hearing, is the sense and process by which sound waves are detected by the ear and transmitted to the brain for interpretation, enabling sound perception.