Benjamin Stone opened Stone's Repairs on March 1 of the current year.During March,the following transactions occurred and were recorded in the company's books: 1.Benjamin,the sole stockholder,invested $25,000 cash in the business in exchange for common stock.
2.Benjamin contributed $100,000 of equipment to the business in exchange for common stock.
3.The company paid $2,000 cash to rent office space for the month of March.
4.The company received $16,000 cash for repair services provided during March.
5.The company paid $6,200 for salaries for the month of March.
6.The company provided $3,000 of services to customers on account.
7.The company paid cash of $500 for utilities for the month of March.
8.The company received $3,100 cash in advance from a customer for repair services to be provided in April.
9.The company paid Benjamin $5,000 cash as a dividend.
Based on this information,total stockholder's equity reported on the balance sheet at the end of March would be:
A)$133,400.
B)$130,300.
C)$125,300.
D)$8,400.
E)$13,500.

Question

Quizplus · Accepted Answer

Total stockholder's equity at the end of March can be calculated as follows:

Common Stock: $25,000 (from transaction 1)
Equipment: $100,000 (from transaction 2)
Retained Earnings: 
- Revenue: $16,000 (from transaction 4)
- Accounts Receivable: $3,000 (from transaction 6)
- Expenses: $2,000 (rent) + $6,200 (salaries) + $500 (utilities) = $8,700
- Dividends: $5,000 (from transaction 9)

Retained Earnings = $16,000 + $3,000 - $8,700 - $5,000 = $5,300

Total Stockholder's Equity = Common Stock + Equipment + Retained Earnings 
= $25,000 + $100,000 + $5,300 
= $130,300

Therefore, the correct answer is B.

Benjamin Stone Opened Stone's Repairs on March 1 of the Current