Question

Aaliyah Turner opened Turner Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books: 1. Aaliyah invested $15,400 cash in the business in exchange for common stock. 2. Aaliyah contributed $39,000 of photography equipment to the business in exchange for common stock. 3. The company paid $4,000 cash for an insurance policy covering the next 24 months. 4. The company received $7,600 cash for services provided during January. 5. The company purchased $8,100 of office equipment on credit. 6. The company provided $4,650 of services to customers on account. 7. The company paid cash of $3,400 for monthly rent. 8. The company paid $5,000 on the office equipment purchased in transaction #5 above. 9. Paid $465 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: Multiple Choice $62,785. $53,950. $49,685. O $58,000. O

Answer 1

	Statement of stockholder's equity
	Common Stock
	Beginning balance					$               -
Add:	Issued during the month					$ 54,400.00
	Ending balance				(a)		$ 54,400.00
	Retained Earnings
	Beginning balance
Add:	Revenue earned during the month					$ 12,250.00
Less:	Expenses incurred					$   3,865.00
	Ending balance				(b)		$   8,385.00
	Stockholder's equity on the Balance Sheet date					(a+b)	$62,785.00