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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.
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