Park & Company was recently formed with a $25,000 investment in the company by stockholders in exchange for common stock.The company then borrowed $10,000 from a local bank,purchased $5,000 of supplies on account,and also purchased $25,000 of equipment by paying $10,000 in cash and signing a promissory note for the balance.Based on these transactions,the company's total assets are:
A)$35,000.
B)$45,000.
C)$50,000.
D)$55,000.

Question

Quizplus · Accepted Answer

Cash of $25,000 from stock issuance + Cash of $10,000 borrowed from bank + Supplies purchased in the amount of $5,000 + Equipment purchased in the amount of $25,000 − Cash paid for equipment of $10,000 = $55,000

Park & Company Was Recently Formed with a $25,000 Investment