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Assume a company has the following transactions during the week.

a. $4,000 cash is received in exchange of 100 shares of stock.

b. The company received a loan of $10,000.


C. The company buys $6,000 worth of equipment with cash.


d. The company provides a service and is paid $3,000.

e. $2,000 worth of services is provided to a Joe Client on credit (Joe Client is to pay at a later date).


f. Joe Client decides to pay $500 of the amount owed.


What is the total dollar amount of assets at the end of the week?


(Hint: Use the accounting equation.)
$8.500 $9,500 $9,000 $18.500 $19,000 $19,500​

Respuesta :

azikennamdi

The total value in dollars of Assets for the company is $10,000 + Equity.

What is the Accounting Equation?

The accounting equation is given as

Assets = Liabilities + Equity

Of the following items given in the question, the following may be listed as assets:

  • $ 4,000 Cash. Cash is an asset;
  • $6,000 worth of Property Plant and Equipment (PPE). PPE is a non-current asset;
  • $ 3,000 worth of Revenue/Sales;
  • $2,000 of Accounts Receivable from Joe Client.

Note that the $500 dollars paid later is an asset but will not be listed here for computation because according to the accounting principles, an adjustment will be made to reduce Accounts Receivable whilst Cash is increased by $500. Both Cash and Account Receivable are listed as assets.

Therefore, Total Assets  = 4000+6,000+3000+2000
                                        = $15,000

The only liability stated is $10,000 taken as a loan.

Therefore, Total Liability = $10,000

Equity: We don't know the value of the total equity.

So we assign X the value of total equity.

Recall that the accounting equation states that

Assets = Liabilities + Equity;

Therefore,

$15,000= $10,000 + Equity.


See other questions related to the accounting equation in the link below:

https://brainly.com/question/24401217

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