Question : Watt Company was established In January, Year 1. During Year : 7235

Watt Company was established In January, Year 1. During Year 1 the company experienced the following events. Collected $6,000 cash from the issue of common stock. Borrowed $3,000 cash from the state bank. Earned $4,000 of cash revenue. Paid $2,000 cash expenses. The company was liquidated at the end of Year 1. Based on this information the stockholders would receive $6,000. the stockholders would receive $8,000. the creditor (the bank) would receive $2,000. the creditor (the bank) would receive $6,000.