Answer:
$80,000
Explanation:
(4) Paid all $80,000 of expenses in cash in 2017.
This will be reported in Koosman's total expenses reported on the income statement for 2017
(1) Started company by selling $250,000 of common stock on January 1, 2017.
This is the raising of capital by issuance of shares, this is reported in statement of changes in equity and balance sheet.
(2) Invested $100,000 cash in an office building and computer systems in 2017.
This is the purchase of the asset and will be reported in balance sheet.
(3) Generated and collected revenues of $125,000 cash in 2017 by providing consulting services.
This is the revenue and will be reported on income statement
(5) Paid a $10,000 cash dividend in 2017.
This is the payment of dividend and will be reported in statement of changes in equity. It is deducted directly from the Retained Earnings
