1. Park & Company was recently formed with a $6,400 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,400 from a local bank, purchased $1,140 of supplies on account, and also purchased $6,400 of equipment by paying $2,140 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are:

$11,940.

$9,800.

$12,800.

$15,200.

A company was formed with $61,000 cash contributed by its owners in exchange for common stock. The company borrowed $31,000 from a bank. The company purchased $11,000 of inventory and paid cash for it. The company also purchased $71,000 of equipment by paying $10,000 in cash and issuing a note for the remainder.

2. What is the amount of the total assets to be reported on the balance sheet?

$92,000

$81,000

$163,000

$153,000

3. What is the amount of the total liabilities to be reported on the balance sheet?

$81,000

$0

$92,000

$61,000

Assets totaled $25,650 and liabilities totaled $8,640 at the beginning of the year. During the year, assets decreased by $3,640 and liabilities increased by $2,940.

4. What is the amount of stockholders equity at the end of the year?

$17,010

$15,430

$16,310

$10,430

5.

The following account balances were listed on the trial balance of Edgar Company at the end of the period:

Account	Balance
Accounts payable	$	32,800
Cash		51,100
Common Stock		41,000
Equipment		19,000
Land		50,500
Notes Payable		65,500

The companys trial balance is not in balance and the companys accountant has determined that the error is in the cash account. What is the correct balance in the cash account?

$37,000.

$69,800.

$4,300.

$77,700.