Question

Radar Repair Company opened on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 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 additionalMarch 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: OA. $37,000 B. none of the answer choices provided are correct. $54,500 $50,500 E. $53,500

Answer 1

Calculate total Stockholder's equity

Invested in Common Stock	15000
Contributed in Common Stock	22000
Net income	16500
Total Stockholder's equity	53500

So answer is e) $53500