Wiley Hill Opened Hill's Repairs, Inc

question 218

Multiple Choice

Wiley Hill opened Hill's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Wiley invested $25,000 cash in the corporation.
2) Wiley contributed $100,000 of equipment to the corporation.
3) The company paid $2,000 cash to rent office space for the month.
4) The company received $16,000 cash for repair services provided during March.
5) The company paid $6,200 for salaries for the month.
6) The company provided $3,000 of services to customers on account.
7) The company paid cash of $500 for monthly utilities.
8) The company received $3,100 cash in advance of providing repair services to a customer.
9) The company paid $5,000 cash in dividends to Wiley. (sole shareholder)
Based on this information, the balance in 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.

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Definitions:

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service.

Demand Curve

A graph showing the relationship between the price of a good and the amount of that good that consumers are willing to purchase at various prices.

Elastic Segment

A portion of the demand curve where consumers are highly responsive to changes in price, indicating elasticity.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a specific period.