A company\'s January 1, 2014 balance sheet reported total assets of $129,000 and

Question

A company's January 1, 2014 balance sheet reported total assets of $129,000 and total liabilities of $31,000. During January 2014, the following transactions occurred: (A) the company issued stock and collected cash totaling $39,000; (B) the company paid an account payable of $6,900; (C) the company purchased supplies for $1,900 with cash; (D) the company purchased land for $51,000 paying $19,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above?

A. $137,000.

B. $98,000.

C. $211,100.

D. $39,000.

Explanation / Answer

Given the Total Assets on 1st January 2014, Total assets = $129,000.

Total Liabilities = $ 31000,

So Stock holder's Equity on 1st January 2014

stock holder equity = Total Assets - Total liabilities

      = $129000- $ 31000 = $ 98000 on 1st Jan 2014.

New stock issued during January is $ 39000,

so , the stock holders Equity above transactions is $ 98000+ $39000= $137,000.

the answer is option A, $137,000.

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