Practice prompt · Q:transactions-to-statements/equation-mixed-events-002

Equation effects across 4 transactions

Compute assets, liabilities, and equity after financing, investing, revenue, and expense transactions.

Updated Sep 6, 2026 Review due Nov 30, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

Summit Media begins with $25,000 Cash and $25,000 Common Stock. It borrows $8,000 from a bank, buys equipment for $11,000 cash, provides $6,000 of services for cash, and pays $2,000 of current wages. What are the ending totals?

Choose the best answer. A Assets $37,000; liabilities $8,000; equity $29,000. B Assets $26,000; liabilities $8,000; equity $18,000. C Assets $48,000; liabilities $8,000; equity $29,000. D Assets $37,000; liabilities $0; equity $37,000.

Your answer stays on this page. It is not sent or saved.

Show explanationHide explanation

Answer: A

Cash ends at $26,000 ($25,000 + $8,000 - $11,000 + $6,000 - $2,000). Equipment is $11,000, so total assets are $37,000. The loan leaves an $8,000 liability. Equity is $29,000 ($25,000 + $6,000 - $2,000).