Wiley Hill opened Hill's Repairs, Inc. on March 1 of the current year. During March, the following transactions occurred and were recorded in the company's books: 1. Wiley invested $25,000 cash in the corporation.
2) Wiley contributed $100,000 of equipment to the corporation.
3) The company paid $2,000 cash to rent office space for the month.
4) The company received $16,000 cash for repair services provided during March.
5) The company paid $6,200 for salaries for the month.
6) The company provided $3,000 of services to customers on account.
7) The company paid cash of $500 for monthly utilities.
8) The company received $3,100 cash in advance of providing repair services to a customer.
9) The company paid $5,000 cash in dividends to Wiley. (sole shareholder)
Based on this information, the balance in Stockholders' Equity reported on the Balance Sheet at the end of March would be:

Question

Quizplus · Accepted Answer

The balance in Stockholders' Equity can be calculated as follows:

Common Stock = $25,000 (from transaction 1)
Retained Earnings = $100,000 (from transaction 2) - $5,000 (from transaction 9) + $16,000 (from transaction 4) - $6,200 (from transaction 5) + $3,000 (from transaction 6) - $500 (from transaction 7) + $3,100 (from transaction 8) = $110,200

Therefore, the total Stockholders' Equity is $135,200 ($25,000 + $110,200), but since the question asks for the balance at the end of March, we need to subtract the dividends paid to Wiley, resulting in a balance of $130,200. However, since the answer choices are not exact, the closest one is B, $130,300.

Wiley Hill Opened Hill's Repairs, Inc