I have an accounting problem.?
Question:
Accounts receivable 750
Accounts payable 500
Land 600
Common stock ?
Retained earnings 2600
Revenues 5400
Expenses 4000
Based on the above information, what is the balance of Common Stock for Paulson Company?
A) $750
B) $1,050
C) $1,550
D) $2,050
Answer:
if you add up all the assets(cash A/R and land) they sum up to 4150 USD. On the credit side: A/P 500 R.E 2600 summing up to 3100 USD. As you know a balance sheet shoudle be balances (debt=credit) so stocks should be C.S is 1050 (Answer B)
it's B
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