Jaycox Company received $1,000 cash from the issue of stock on January 1, 2016. During 2015 the Jaycox Company earned $3,500 of revenue on account. The company collected $2,400 cash from accounts receivable and paid $3,000 cash for operating expenses. Based on this information alone
A) Total assets increased by $1,500
B) Total assets decreased by $3,500
C) Total assets increased by $2,400
D) Total assets did not change

Question

Quizplus · Accepted Answer

Total assets increased by $1,500 because the company received $1,000 from issuing stock and collected $2,400 from accounts receivable, totaling $3,400 in increases. They paid $3,000 in operating expenses, so the net increase in assets is $1,500 ($3,400 - $3,000 = $1,500).

Jaycox Company Received $1,000 Cash from the Issue of Stock