Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:
1) issued stock for $48,0002) borrowed $29,000 from its bank3) provided consulting services for $47,000 cash4) paid back $19,000 of the bank loan5) paid rent expense for $11,0006) purchased equipment for $16,000 cash7) paid $3,400 dividends to stockholders8) paid employees' salaries of $25,000
What is Yowell's notes payable balance at the end of Year 1?
A) $29,000
B) $0
C) $19,000
D) $10,000

Question

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 
1) issued stock for $48,0002) borrowed $29,000 from its bank3) provided consulting services for $47,000 cash4) paid back $19,000 of the bank loan5) paid rent expense for $11,0006) purchased equipment for $16,000 cash7) paid $3,400 dividends to stockholders8) paid employees' salaries of $25,000
What is Yowell's notes payable balance at the end of Year 1?
A) $29,000
B) $0
C) $19,000
D) $10,000

Quizplus · Accepted Answer

The notes payable balance at the end of Year 1 is $10,000, calculated by subtracting the amount paid back ($19,000) from the original loan amount ($29,000).

Yowell Company Began Operations on January 1, Year 1