Johnson Waterworks Corporation provides plumbing services. Transactions during the first year of operations are provided below.
A. Received $11,000 cash and issued common stock to Mitchell Johnson.
B. Paid $1,200 for equipment to be used for plumbing repairs.
C.Borrowed $15,000 from a local bank and deposited the money in the checking account.
D. Paid $400 in rent for the year.
E. Paid $400 for plumbing supplies to be used on various jobs next year.
F. Completed a plumbing repair for a law firm and received $3,500.
Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $400 are left at the end of the year.

Question

Johnson Waterworks Corporation provides plumbing services. Transactions during the first year of operations are provided below. 
A. Received $11,000 cash and issued common stock to Mitchell Johnson.
B. Paid $1,200 for equipment to be used for plumbing repairs.
C.Borrowed $15,000 from a local bank and deposited the money in the checking account.
D. Paid $400 in rent for the year.
E. Paid $400 for plumbing supplies to be used on various jobs next year.
F. Completed a plumbing repair for a law firm and received $3,500.
Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $400 are left at the end of the year.

Quizplus · Accepted Answer

To calculate the total assets at the end of the year, we need to add up all the assets accumulated during the year.

The assets accumulated during the year are: 
1. Equipment purchased for $1,200
2. Cash received from issuing common stock for $11,000
3. Cash borrowed from the bank for $15,000
4. Cash received from completing a plumbing job for $3,500
5. Plumbing supplies worth $400

Therefore, the total assets at the end of the year are:
$1,200 (equipment) + $11,000 (cash from stock issuance) + $15,000 (cash from borrowing) + $3,500 (cash from plumbing job) + $400 (plumbing supplies) = $29,100.

Option D is the correct answer.

Johnson Waterworks Corporation Provides Plumbing Services