McCoy Corporation provides plumbing services. Transactions during the first year of operations are provided below. a) Received $11,000 cash and issued common stock to Sharon McCoy. b) Paid $2,000 cash for equipment to be used for plumbing repairs. c) Borrowed $13,000 from a local bank and deposited the money in the checking account. d) Paid $400 rent for the year. e) Purchased $400 of office supplies by cash. f) Completed a plumbing repair project for a local lawyer and received $3,500 cash. Calculate the amount of total liabilities at the end of the first year. A. $11,000 B. $13,000 C. $22,000 D. $3,500
McCoy Corporation provides plumbing services. Transactions during the first year of operations are provided below. a) Received $11,000 cash and issued common stock to Sharon McCoy. b) Paid $2,000 cash for equipment to be used for plumbing repairs. c) Borrowed $13,000 from a local bank and deposited the money in the checking account. d) Paid $400 rent for the year. e) Purchased $400 of office supplies by cash. f) Completed a plumbing repair project for a local lawyer and received $3,500 cash. Calculate the amount of total liabilities at the end of the first year. A. $11,000 B. $13,000 C. $22,000 D. $3,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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McCoy Corporation provides plumbing services. Transactions during the first year of operations are provided below.
a) Received $11,000 cash and issued common stock to Sharon McCoy.
b) Paid $2,000 cash for equipment to be used for plumbing repairs.
c) Borrowed $13,000 from a local bank and deposited the money in the checking account.
d) Paid $400 rent for the year.
e) Purchased $400 of office supplies by cash.
f) Completed a plumbing repair project for a local lawyer and received $3,500 cash.
Calculate the amount of total liabilities at the end of the first year.
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