Question

A company's January 1, 2019 balance sheet reported total assets of $167,000 and total liabilities of $68,500. During January 2019, the company completed the following transactions: (A) paid a note payable using $18,500 cash (no interest was paid); (B) collected a $17,500 accounts receivable; (C) paid a $6,700 accounts payable; and (D) purchased a truck for $6,700 cash and by signing a $28,500 note payable from a bank. The company's January 31, 2019 balance sheet would report which of the following?

Multiple Choice

A

Assets	Liabilities	Stockholders's Equity
$170,300	$71,800	$98,500

B

Assets	Liabilities	Stockholders's Equity
$167,000	$68,500	$98,500

C

Assets	Liabilities	Stockholders's Equity
$177,000	$90,300	$86,700

D

Assets	Liabilities	Stockholders's Equity
$195,500	$128,900	$66,600

Answer 1

Answer: Option A " Assets $170,300 Liabilities $71800 Stockholders Equity $98500

Explanation:

Particulars	Amount	Particulars	Amount
Total Liabilities (Beginning	$68500	Total Assets (Beginning)	$167000
Paid a Note payable (Decreases Liability)	-$18500	Cash (Note payable paid)	-$18500
Accounts paaybles paid	-$6700	Cash (Icreases as Collected Accounts Recivable)	$17500
Note Payable (for Truck)	$28500	Accounts receivable (Decreases as Collected )	-$17500
Total Liabilities	$71800	Cash (Accounts payables paid)	-$6700
		Truck (Purchase increases asset )	$35200
		Cash (Paid for Truck purchase)	-$6700
Stockholders Equity (Balance figure )	$98500
Total Stockholders Equity &Liabilities at 31 Jan 2019	$170300	Total Assets at 31 Jan 2019	$170300