Park & Company was recently formed with a $5,000 investment in the company by shareholders.The company then borrowed $2,000 from a local bank,purchased $1,000 of supplies on account,and also purchased $5,000 of equipment by paying $2,000 in cash and signing a promissory note for the balance.Based on these transactions,the company's total assets are:
A)$7,000.
B)$9,000.
C)$10,000.
D)$11,000.

Question

Quizplus · Accepted Answer

5,000 cash from stockholders + 2,000 borrowed from bank + 1,000 purchase of supplies on account + 3,000 = 5000 - 2000 (Equipment purchased minus cash paid)= 11,000.

Park & Company Was Recently Formed with a $5,000 Investment