Crusoe Waterworks Corporation provides plumbing services.Transactions of Crusoe Waterworks during the first year of operations are given below.
a)Received $4,000 cash and issued common stock to Robinson.
b)Paid $3,000 cash for equipment to be used for plumbing repairs.
c)Borrowed $27,000 from a local bank and deposited the money in the checking account.
d)Paid $900 rent for the year.
e)Purchased $1,000 of office supplies on account.
f)Completed a plumbing repair project for a local lawyer and received $3,200 cash.
Calculate the amount of total stockholders' equity after recording the transactions.Assume office supplies of $1,000 are left at the end of the year.

Question

Crusoe Waterworks Corporation provides plumbing services.Transactions of Crusoe Waterworks during the first year of operations are given below. 
a)Received $4,000 cash and issued common stock to Robinson.
b)Paid $3,000 cash for equipment to be used for plumbing repairs.
c)Borrowed $27,000 from a local bank and deposited the money in the checking account.
d)Paid $900 rent for the year.
e)Purchased $1,000 of office supplies on account.
f)Completed a plumbing repair project for a local lawyer and received $3,200 cash.
Calculate the amount of total stockholders' equity after recording the transactions.Assume office supplies of $1,000 are left at the end of the year.

Quizplus · Accepted Answer

Equity (ending)= Common Stock - Dividends + Revenues - Expenses
Stockholders' Equity = $4,000 + $3,200 - $900 = $6,300

Crusoe Waterworks Corporation Provides Plumbing Services