Question

Andrea Apple opened Apple Photography, Inc. on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:

1 - Andrea, the stockholder, invested $13,500 cash in the business.
2 - Andrea contributed $20,000 of photography equipment to the business.
3 - The company paid $2,100 cash for an insurance policy covering the next 24 months.
4 - The company received $5,700 cash for services provided during January.
5 - The company purchased $6,200 of office equipment on credit.
6 - The company provided $2,750 of services to customers on account.
7 - The company paid cash of $1,500 for monthly rent.
8 - The company paid $3,100 on the office equipment purchased in transaction #5 above.
9 - Paid $275 cash for January utilities.
Based on this information, the balance in the stockholders' equity reported on the Balance Sheet at the end of the month would be:
(a)- $31,400.
(b)- $39,200.
(c)- $31,150.
(d)- $40,175.
(e)- $30,875.

Answer 1

The balance in the stockholders' equity reported on the Balance Sheet at the end of the month

How to get the balance in the stockholders' equity reported on the Balance Sheet at the end of the month

Stockholders' equity, also known as shareholders' equity or owner's equity, represents the residual interest in the assets of a company after deducting its liabilities.

It's the amount of the company's assets that the owners or shareholders actually own outright. Stockholders' equity is a key component of a company's balance sheet and reflects the company's net worth or book value.

13500 + 20000 + 5700 + 2750 - 1500 - 25

= $40175

The balance that would be reported is $40175

Answer 2

Answer:c

Step-by-step explanation: