Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ABC Company began operations on August 1, 2009 and entered into the following transactions during 2009: 1. On August 1, ABC Company sold common stock

ABC Company began operations on August 1, 2009 and entered into the following transactions during 2009: 1. On August 1, ABC Company sold common stock to owners in the amount of $200,000 and borrowed $100,000 from the local bank on a 10-month, 12% note payable 2. On September 1, ABC Company purchased a piece of equipment costing $80,000 by paying $20,000 in cash and agreeing to pay the remainder within six months. The equipment was assigned a 5-year life and a $5,000 residual value. 3. On October 1, ABC Company received $50,000 cash from a customer for services to be performed over the next 10 months 4. On November 1, ABC Company paid $12,000 cash for a one-year insurance policy 5. On December 1, ABC Company paid $10,000 of the amount owed for the equipment purchased on September 1 Calculate the amount of total assets that ABC Company would report in its 2009 income statement after all the above transactions are recorded and all necessary adjusting entries are made at December 31, 2009. Do not use decimals in your answer.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions