Reliable Waterworks provides plumbing services. Transactions of Reliable Waterworks during the first year of operations are given below. a) The owner, Steve Sharon, contributed $11,000 cash to form the business.
b) Paid $1,400 for equipment to be used for plumbing repairs.
c) Borrowed $15,000 from a local bank and deposited the money in the checking account.
d) Paid $100 in rent for the year.
e) Paid $400 for plumbing supplies to be used on various jobs next year.
f) Completed a plumbing repair for a law firm and received $3,200.
Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $3,200 are left at the end of the year.

Question

Quizplus · Accepted Answer

Total assets are calculated as follows: Initial cash contribution ($11,000) + Equipment ($1,400) + Loan ($15,000) + Cash from repair ($3,200) - Rent ($100) - Supplies ($400) = $29,100.

Reliable Waterworks Provides Plumbing Services