A company has $26,000 in its Land account,$10,000 in its Inventory account,and $6,000 in its Notes Payable (short-term)account.If its only other account is Common Stock,what is the balance of that account?
A) $10,000.
B) $42,000.
C) $30,000.
D) $22,000.

Question

Quizplus · Accepted Answer

The total assets ($26,000 +$10,000) is $36,000. Subtracting the total liabilities ($6,000) gives us the total equity, which must equal the balance in the Common Stock account. So, $36,000 - $6,000 = $30,000, which is the balance in the Common Stock account. Therefore, the answer would be choice C.

A Company Has $26,000 in Its Land Account,$10,000 in Its