Reference no: EM132329267

Question

Gulf Waterworks Corporation provides plumbing services. Transactions during the first year of operations are given below.

a) Received $4,000 cash and issued common stock to Jason Robinson.

b) Paid $2,000 cash for equipment to be used for plumbing repairs.

c) Borrowed $26,000 from a local bank and deposited the money in the checking account.

d) Paid $800 rent for the year.

e) Purchased $800 of office supplies on account.

f) Completed a plumbing repair project for a local lawyer and received $3,500 cash.

Calculate the amount of total stockholders' equity at the end of the first year after recording the transactions. Assume office supplies of $800 are left at the end of the year.