Question

1. Rick Radar, the sole stockholder, invested $15,000 cash in the business in exchange for common stock. 2. Rick contributed $22,000 of equipment to the business in exchange for common stock. 3. The company provided $8,000 of services to customers on account. 4. The company paid $1,000 cash to rent office space for the month of March and April ($500 per month). 5. The company collected $11,000 cash for repair services, $10,000 representing payment for services provided during March* and $1,000 representing payment for services to be provided in April. *these are additional March services & are unrelated to transaction #3. 6. The company paid $1,000 for salaries for the month of March. 7. The company purchased $2,000 of supplies. Radar paid $1,000 of cash at the time the supplies were delivered and purchased the remaining supplies on account. 8. The company collected $3,000 from customers as payment on account for services rendered on account in March (transaction #3). Based on this information, total stockholder's equity reported on the balance sheet at the end of March would be:

Answer 1

Answer: $53500

Step-by-step explanation:

Stockholders' equity is gotten when all liabilities that are owned by a company have been settled and the remaining value of assets are then calculated.

Based on the information given in the question, total stockholder's equity reported on the balance sheet at the end of March would be:

Investment in Common Stock = $15000

Add: Contributed in Common Stock = $22000

Add: Net income = $16500

Total Stockholder's equity will now be:

= $15000 + $22000 + $16500

= $3500