Sharon Samson starts a plumbing service, Reliable Waterworks, a proprietorship Selected transactions are described as follows:
A. Sharon deposits $7,000 into a new checking account for the company.
B. Reliable pays $4,000 cash for equipment to be used for plumbing repairs.
C. Reliable borrows $15,000 from a local bank and deposits the money in the checking account.
D. Reliable pays $600 rent for the first month.
E. Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future.
F. Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash.
After all of the transactions, what is the amount of total owner's equity?
A) $ 5,200
B) $20,200
C) $ 7,700
D) None of the above
Correct Answer:
Verified
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