Jenkins Company began business in June when stockholders invested $85,000 in the business, which in turn issued its common stock to them. Jenkins Company then purchased a building for $40,000 cash and inventory for $21,000 cash, performed services for clients for $10,000 cash, purchased supplies for $10,000 cash, and paid utilities of $7000 cash. What is the amount of cash at the end of June?
A)$24,000
B)$17,000
C)$34,000
D)$38,000

Question

Quizplus · Accepted Answer

Jenkins Company started with $85,000 in cash. They spent $40,000 on a building, $21,000 on inventory, $10,000 on supplies, and $7,000 on utilities, totaling $78,000 in expenses. They earned $10,000 from services. The cash at the end of June is $85,000 - $78,000 + $10,000 = $17,000.

Jenkins Company Began Business in June When Stockholders Invested $85,000