It was the end of the first year that Jack and Brooke operated their bakery. They would like to prepare a balance sheet as of December 31, 20X1 (the end of their first year of
operations). The new owners gathered the following information which is used to prepare the year-ended balance sheet and annual income statement:
• $140,000 was paid for furniture bought on December 31, 20X1 that will be used for 5 years.
$120,000 revenue for the first year

• $60,000 cost of goods sold

$20,000 of goods were bought for later resale.

• $120,000 initial deposit made by the owners on January 1, 20x1.

$10,000 utilities expense

• Two loans were taken out: one for $20,000 will be payable in one year, the other for $50,000 will be payable in five years.

• $5,000 interest expense
• The company has $60,000 in cash.
• Lease expense $15,000
The company's year-end owner's equity is:
O $120,000
O $60,000
O $155,000
O $150,000