Question

Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Andrea invested $14,600 cash in the business in exchange for common stock. 2. Andrea contributed $31,000 of photography equipment to the business in exchange for common stock. 3. The company paid $3200 cash for an insurance policy covering the next 24 months. 4. The company received $6800 cash for services provided during January. 5. The company purchased $7300 of office equipment on credit. 6. The company provided $3850 of services to customers on account. 7. The company paid cash of $2600 for monthly rent. 8. The company paid $4200 on the office equipment purchased in transaction #5 above. 9. Paid $385 cash for January utilities.

Based on this information, the amount of total stockholders' equity-reported on the Balance Sheet at the end of the month would be:

$52,400.

$46,800.

$53,265.

$41,765.

$44,350.

Answer 1

	Stockholder's Equity is generally increased by direct contribution in cash or in kind, further any sales or service revenue
	Increases equity balance and any expenses incurred decreases equity balance.
	Stockholders Equity Statement
1	Cash Invested	14,600
2	Photography equipment contributed	31,000
4	Service revenue for cash	6,800
6	Service revenue on account	3,850
7	Monthly rent paid	(2,600)
9	Paid January utilities	(385)
	Stockholder's Equity Balance Option C	53,265