Question

Home Insert Design RECES Xcut Аавьсас) Аавьсс Аавьс, Аавьсet Аав аавьссс 1 Normal 1 No Space Heading 1 Heading 2 Find - Replace D Select Copy liberation Sans - 11 - A A Aa E... 21 BU XX A..A ... Font Paragraph Title Subtitle Tomat Painter Clipboard Editing 16. At March 1, 2020, COBM Co. reported stockholders' equity of $175,000. During the month, COBM Co. generated revenues of $40,000, incurred expenses of $17,500, purchased a computer for $3,000 and paid dividends of $3,500. What is the amount of stockholders' equity at March 31, 2020 a. $175,000 b. $191,000 c. $194,000 d. $197,500 Type here to search . 2:14 PM 17/2020

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Answer 1

Answer: The correct option is C i.e. $194,000

Stockholders Equity at March 31, 2020 = Stockholders Equity, March 1, 2020 + Revenue – Expenses – Dividend
Stockholders Equity at March 31, 2020 = $175,000 + $40,000 - $17,500 - $3,500
Stockholders Equity at March 31, 2020 = $194,000