At the end of its first month of operations, Michael's Consulting Services reported net income of $25,000. They also had account balances of: Cash, $18,000; Office Supplies, $2,000 and Accounts Receivable $10,000. The sole stockholder's total investment in exchange for common stock for this first month was $5,000. There were no dividends in the first month.Calculate the amount of total equity to be reported on the balance sheet at the end of the month.
A. $7,000
B. $30,000
C. $20,000
D. $5,000
E. $25,000
Answer: B
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