Gadsden Lawn and Mowing Service began operations on January 1, 2002. At the company’s inception, Bob Morgan contributed $100,000 of cash and equipment. During the year, Gadsden earned $200,000 of revenue, incurred $100,000 of expenses, and incurred no liabilities. Total owner’s equity at December 31, 2002, is

a. $0
b. $100,000
c. $200,000
d. $300,000
e. $400,000

Gadsden Lawn and Mowing Service began operations on January 1, 2002. At the company’s inception, Bob Morgan contributed $100,000 of cash and equipment. During the year, Gadsden earned $200,000 of revenue, incurred $100,000 of expenses, and incurred no liabilities. Total owner’s equity at December 31, 2002, is

a. $0
b. $100,000
c. $200,000
d. $300,000
e. $400,000



The answer is C