At the beginning of April, Warren Corporation\'s assets totaled $240,000 and lia

Question

At the beginning of April, Warren Corporation's assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:

Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan.

How much are Warren's total assets at the end of April?

$335,000.

$249,000.

$345,000.

$250,000.

Explanation / Answer

Calculation of Warren's total assets at the end of April Total assets at the beginning of April $240,000 Add:Cash received on issue of stock $20,000 Add: Building Purchased $95,000 Less : Cash payment for building purchase -$10,000 Add : Short term Investment purchased $9,000 Less : Cash payment for purchase of short term investment -$9,000 Less : Cash payment to an employee as a loan -$10,000 Add: Note issued in exchange of loan to an employee $10,000 Total assets at the end of April $345,000 The answer is $345000

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