Asked by
Verified
At the end of its first month of operations,JMP Consulting reported net income of $25,000.They also had account balances of: Cash,$18,000; Office Supplies,$2,000; and Accounts Receivable,$10,000.Stockholders' total investments for this first month was $5,000.There were no dividends in the first month. Calculate the amount of total stockholders' equity reported on the balance sheet at month-end.
A) $30,000
B) $25,000
C) $20,000
D) $5,000
E) $7,000
Stockholders' Equity
The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest held by shareholders.
Net Income
The conclusive profit figure for a company after all taxes, costs, and expenses are subtracted from its aggregate revenue.
Office Supplies
Consumable items such as pens, paper, staplers, and other materials that are used in an office setting for daily operations.
- Comprehend how investments from shareholders and the distribution of dividends affect financial statements.
Verified Answer
Learning Objectives
- Comprehend how investments from shareholders and the distribution of dividends affect financial statements.
Related questions
On January 1 of the Current Year,Jimmy's Sandwich Company Reported ...
Based on This Information,the Amount Reported as Total Stockholders' Equity ...
If Tyrol Willow,the Sole Stockholder of Willow Hardware,withdraws Cash of ...
Shares of Stock Held as Treasury Stock Do Not Have ...
A Company's Assets and Liabilities Both Decrease When a Previously ...