Question

Apple began operations in May, 2003 by selling common stock to
owners in exchange for $90,000 cash. During 2003, Apple entered
into the following transactions:

1.  On May 23, Apple purchased inventory for $50,000 cash.

2.  On June 1, Apple purchased a three-year insurance policy
    for $23,400 cash.

3.  On July 1, Apple received $49,500 cash from a customer
    for services to be performed over the next 18 months.

4.  On August 1, Apple purchased equipment for $60,000 cash.
    The equipment was assigned a 10-year life and a $2,400 residual
    value.

5.  On August 18, Apple sold one-half of the inventory that
    was purchased on May 23 to a customer for $44,000 cash.

Calculate the amount of total equity that Apple would report in
its December 31, 2003 balance sheet after all the above transactions
are recorded and all necessary adjusting entries are made and posted. 

Answer 1