Consider the following three transactions of NuCompany 1 Sto

Consider the following three transactions of NuCompany:

1. Stockholders invested $100,000 cash and land worth $50,000 in exchange for common stock of the company.

2. NuCompany made sales on account of $3,000.

3. NuCompany purchased a delivery vehicle valued at $25,000, paying cash of $2,500 and signing a note payable for the balance.

After all three transactions are recorded, the accounting equation will read as:

A) $178,000 = $25,000 + $153,000

B) $172,500 = $22,500 + $150,000  

C) $175,500 = $22,500 + $153,000

D) $172,500 = $25,000 + $147,500

Solution

Accounting equation :

So answer is c) $175,500 = $22,500 + $153,000