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Park & Company was recently formed with a $5,000 investment in the company by stockholders in exchange for common stock. The company then borrowed $2,000
Park & Company was recently formed with a $5,000 investment in the company by stockholders in exchange for common stock. The company then borrowed $2,000 from a local bank, purchased $1,000 of supplies on account, and also purchased $5,000 of equipment by paying $2,000 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are: |
a. $7,000.
b. $11,000.
c. $10,000.
d. $9,000.
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