The following transactions occurred during December, the first month of operations for Johnson, Corp.: Purchased $150,000 of equipment by making a $55,000 cash down payment and signing a note payable for the balance. Capital stock was issued in exchange for $225,000 cash. Made a $25,000 cash payment on the note payable from the purchase of equipment. Sold a piece of equipment for cash of $14,000. The equipment was sold at cost, so there is no gain or loss on the sale. What is the total owners' equity at the end of March? Select one: OA. 225,000 debit OB. 225,000 credit OC. 200,000 debit OD. 200,000 credit
The following transactions occurred during December, the first month of operations for Johnson, Corp.: Purchased $150,000 of equipment by making a $55,000 cash down payment and signing a note payable for the balance. Capital stock was issued in exchange for $225,000 cash. Made a $25,000 cash payment on the note payable from the purchase of equipment. Sold a piece of equipment for cash of $14,000. The equipment was sold at cost, so there is no gain or loss on the sale. What is the total owners' equity at the end of March? Select one: OA. 225,000 debit OB. 225,000 credit OC. 200,000 debit OD. 200,000 credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject :- Accounting
Transcribed Image Text:The following transactions occurred during December, the first month of operations for Johnson, Corp.:
Purchased $150,000 of equipment by making a $55,000 cash down payment and signing a note payable for the balance.
Capital stock was issued in exchange for $225,000 cash.
Made a $25,000 cash payment on the note payable from the purchase of equipment.
Sold a piece of equipment for cash of $14,000. The equipment was sold at cost, so there is no gain or loss on the sale.
What is the total owners' equity at the end of March?
Select one:
OA. 225,000 debit
OB. 225,000 credit
OC. 200,000 debit
OD. 200,000 credit
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