esla Company had the following cash transactions during Year 1, its first year o

Question

esla Company had the following cash transactions during Year 1, its first year of operations. 1) Acquired $1,450 cash from the issue of common stock. 2) Borrowed $920 from a bank. 3) Earned $1,100 of revenues cash. 4) Paid expenses of $350. 5) Paid a $150 dividend. During Year 2, Tesla had the following cash transactions. 1) Issued an additional $825 of common stock. 2) Repaid $570 of its debt to the bank. 3) Earned revenues of $1,250 cash. 4) Incurred expenses of $560. 5) Paid dividends of $200. Based on the information above, Tesla should report total assets on the balance sheet at the end of Year 2 of: $3,915. $690. None of these choices are correct $745. $3,715.

Explanation / Answer

Calculate total assets :

So answer is d) $3715

Cash flow issue common stock 1450 Cash from borrow 920 Cash revenue 1100 Cash expense paid -350 Dividend paid -150 Additiona issue common stock 825 Loan repaid -70 Cash revenue earned 1250 Paid dividend -200 Expense paid -560 Ending cash balance 3715

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