A company's January 1, 2019 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2019, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000, paying $10,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above

$110,000

Explanation:

A company's January 1, 2016 balance sheet reported total assets of $120,000 and total liabilities of $40,000. During January 2016, the following transactions occurred: (A) the company issued stock and collected cash totaling $30,000; (B) the company paid an account payable of $6,000; (C) the company purchased supplies for $1,000 with cash; (D) the company purchased land for $60,000 paying $10,000 with cash and signing a note payable for the balance. What is total stockholders' equity after the transactions above?

$110,00

Beginning equity = $120,000 − $40,000 = $80,000.

Only transaction (A) affects stockholders' equity.

Therefore, stockholders' equity = $80,000 + $30,000 = $110,000.

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