Reference no: EM132643679

Question - Shutter Company began business on Jan. 1, 2020. During the three month period ending March 31, 2020, Shutter had the following transactions:

Jan. 1 - Sold 100 shares of stock to stockholders for $10,000.

Jan. 1 - Borrowed $20,000. No payments are due on this loan until Jan. 1, 2022, and at that time Shutter will owe $21,200.

Feb. 1 - Paid $900 for insurance for three months.

Feb. 1 - Bought equipment for $15,000 cash. The equipment is expected to last for five years and then be worthless.

Feb. 8 - Purchased inventory on account for $8,000.

Feb. 14 - Bought land for $11,000 cash.

Feb. 26 - Sold $2,500 of inventory for $7,000 cash.

March 2 - Paid accounts payable.

March 7 - Sold one-half of the land for $6,000 cash.

March 12 - Paid $4,000 in salaries

March 26 - Sold $5,000 in inventory for $13,000, half in cash and half on account.

March 28 - Received utility bill for the first quarter's utilities of $2,600. This will be paid in April.

March 31 - Paid $1,000 in dividends.

Required - How much did Shutter Co. have in cash at March 31, 2020?

a. $17,600

b. $9,600

c. $16,100

d. $1,600

e. None of the above