Question

A company's January 1, 2019 balance sheet reported total assets of $153,000 and total liabilities of $61,500. During January 2019, the company completed the following transactions: (A) paid a note payable using $11,500 cash (no interest was paid); (B) collected a $10,500 accounts receivable; (C) paid a $5,300 accounts payable; and (D) purchased a truck for $5,300 cash and by signing a $21,500 note payable from a bank. The company's January 31, 2019 balance sheet would report which of the following?

Multiple Choice

• Assets	Liabilities	Stockholders's Equity
  $163,000	$77,700	$85,300

• Assets	Liabilities	Stockholders's Equity
  $153,000	$61,500	$91,500

• Assets	Liabilities	Stockholders's Equity
  $174,500	$105,100	$69,400

• Assets	Liabilities	Stockholders's Equity
  $157,700	$66,200	$91,500

Answer 1

Stockholders' equity $ Assets 157,700 Liabilities $ 66,200 $ 91,500 Working Notes: Liabilities + $ 61,500 $(11,500) Stockholders' equity 91,500 Beginning balances Paid a note payable using $11,500 cash Collected a $10,500 accounts receivable (A) (B) + Assets = $153,000 = $ (11,500) = $ 10,500 $ (10,500) = $ (5,300) = + + (C) $ (5,300) + Paid a $5,300 accounts payable Purchased a truck for $5,300 cash and by signing a $21,500 note payable from a bank (D) $ 21,500 + $ $ 26,800 = $ (5,300) = $157,700 Ending Balance $ 66,200 $ 91,500