Which of the following reflects the impact of a transaction where $330,000 cash

Question

Which of the following reflects the impact of a transaction where $330,000 cash was invested by stockholders in exchange for stock?

Assets and revenues each increased $330,000. Stockholders' equity and revenues each increased $330,000. Stockholders' equity and assets each increased $330,000. Assets and liabilities each increased $330,000.


A corporation has $89,000 in total assets, $31,500 in total liabilities, and a $17,400 credit balance in retained earnings. What is the balance in the contributed capital account? rev: 05-04-2011 $40,100 $57,500 $48,900 $74,900

When a company buys equipment for $151,000 and pays for one fourth in cash and the other three fourths is financed by a note payable, which of the following are the effects on the accounting equation? Total liabilities decrease by $37,750. Total assets decrease by $37,750. Total assets increase by $113,250. Total liabilities increase by $151,000.

Explanation / Answer

1.Stockholders' equity and assets each increased $330,000.

2. balance in the contributed capital account = 89,000 -31,500 - $17,400 =$40100

$40,100

3. Total assets increase by $113,250.

Since 151,000 -1/4*151,000 = 113250

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