X Company was formed on July 1, 2014, and had the following transactions during

Question

X Company was formed on July 1, 2014, and had the following transactions during the rest of 2014:

received $8,499 in cash contributions from the owners

purchased $8,455 worth of merchandise, all on account

sold merchandise that cost $8,354 for $10,443, all on account

paid $3,978 to suppliers for merchandise purchased on account

received $3,882 from customers for merchandise sold on account

paid $5,801 for land and equipment

borrowed cash from the bank in the amount of $4,992

What were total assets on December 31, 2014 (ignore depreciation on the equipment and interest on the loan)?

Explanation / Answer

Details of total assets as on 31-12-2014 Particulars Amount in $ Amount in $ Cash Cash received from owner 8499 cash paid to supplier -3978 Received from customer 3882 paid for land and equipment( assumed purchased) -5801 cash borrowed from bank 4992 7594 Inventory Purchased merchandise on account 8455 cost of merchandise sold -8354 101 Accounts Receivable Sold merchandise on account 10443 Received from customer -3882 6561 Land and Equipment paid for land and equipment( assumed purchased) 5801 5801 Total assets 20057

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