. $20,200 b. $7,700 c. $5,200 d. $7,300
Sharon Samson starts a plumbing service named Reliable Waterworks. Selected transactions are described as follows:
A) Sharon deposits $7,000 into a new checking account for the business, recording the capital contribution.
B) Reliable pays $4,000 cash for equipment to be used for plumbing repairs.
C) Reliable borrows $15,000 from a local bank and deposits the money in the checking account.
D) Reliable pays $600 rent for the first month.
E) Reliable pays $400 cash for plumbing supplies to be used on various jobs in the future.
F) Reliable completes a plumbing repair project for a local lawyer and receives $1,300 cash.
G) Sharon takes a cash withdrawal of $2,500.
After all the transactions, what is the amount of total owner's equity?
$20,200
$7,700
$5,200
$7,300
A balance sheet is a tool for measuring the performance and financial position of every organization over a specific period. It is the main part of the financial statement. This balance sheet is prepared by sole proprietorships, corporations, corporations, etc.
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