Hal Smith Opened Smith's Repairs on March 1 of the Current

question 167

Multiple Choice

Hal Smith opened Smith's Repairs on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Smith invested $25,000 cash in the business.
2) Smith contributed $100,000 of equipment to the business.
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) Smith withdrew $5,000 for his personal use from the company.
Based on this information, the balance in Hal Smith, Capital reported on the Statement of Owner's Equity 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:

Premise

A premise is a statement or proposition from which another is inferred or follows as a conclusion.

Minor Term

In syllogistic logic, the term that appears in the conclusion and the minor premise but not in the major premise.

Conclusion

The statement in a logical argument that follows from the premises.

Major Premise

The first statement in a syllogism, containing the universal principle or general assertion.