Consider the following three transactions of NuCompany: 1. Stockholders invested
ID: 2396586 • Letter: C
Question
Consider the following three transactions of NuCompany:
1. Stockholders invested $100,000 cash and land worth $50,000 in exchange for common stock of the company.
2. NuCompany made sales on account of $3,000.
3. NuCompany purchased a delivery vehicle valued at $25,000, paying cash of $2,500 and signing a note payable for the balance.
After all three transactions are recorded, the accounting equation will read as:
A) $178,000 = $25,000 + $153,000
B) $172,500 = $22,500 + $150,000
C) $175,500 = $22,500 + $153,000
D) $172,500 = $25,000 + $147,500
Explanation / Answer
Accounting equation :
So answer is c) $175,500 = $22,500 + $153,000
Assetss = Liabilities + Equity 1 150000 = 0 + 150000 2 3000 = 0 + 3000 3 22500 = 22500 + 0 Total 175500 = 22500 + 153000