Reliable Waterworks Corporation provides plumbing services.

Reliable Waterworks Corporation provides plumbing services. Transactions of Reliable Waterworks during the first year of operations are given below.

a) Received $11,000 cash and issued common stock to Sharon

b) Paid $2,000 for equipment to be used for plumbing repairs.
c) Borrowed $10,000 from a local bank and deposited the money in the checking account.
d) Paid $300 in rent for the year.
e) Paid $200 for plumbing supplies to be used on various jobs next year.
f) Completed a plumbing repair for a law firm and received $3,000.

Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $3,000 are left at the end of the year.
A) $2,200
B) $2,000
C) $21,000
D) $23,700

ANSWER

D .Cash ($11,000 + $10,000 + $3,000 – $2,000 – $300 – $200 ) $21,500
Equipment 2,000
Supplies 200
Total assets $23,700