X Company was formed on July 1, 2014, and had the following transactions during
ID: 2501281 • Letter: X
Question
X Company was formed on July 1, 2014, and had the following transactions during the rest of 2014:
received $8,916 in cash contributions from the owners
purchased $8,753 worth of merchandise, all on account
sold merchandise that cost $6,985 for $11,641, all on account
paid $3,423 to suppliers for merchandise purchased on account
received $3,777 from customers for merchandise sold on account
paid $5,661 for land and equipment
borrowed cash from the bank in the amount of $4,008
What were total assets on December 31, 2014 (ignore depreciation on the equipment and interest on the loan)?
Explanation / Answer
Assets
Cash + Account recievable + inventory + land and equipment = liabilites + owner equity + RE
8916 = 8916
8753 = 8753
11,641 = 11,641
(6985) = (6985)
(3423) = (3423)
3777 + ( 3777)
(5661) + 5661 =
4008
7617 +7864 +1768 +5661 = $22,910(total assets)
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