Chapter 2, Problem 7MC

A company was recently formed with $50,000 cash contributed to the company by stockholders for common stock. The company then borrowed $20,000 from a bank and bought $10.000 of supplies on account. The company also purchased $50,000 of equipment by paying $20,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet?

1. a. $110,000
2. b. $100,000
3. c. $90,000
4. d. None of the above