Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alamo Freeze Corporation starts in business on October 1, and here are some of its transactions during the next three months: Oct. 1 - Paid

Alamo Freeze Corporation starts in business on October 1, and here are some of its transactions during the next three months:

  • Oct. 1 - Paid one year's rent of $12,000.
  • Oct. 1 - Bought equipment for $18,000 cash . The equipment is expected to last 6 years and then be worthless.
  • Oct. 1 - Bought inventory for $12,000 on account.
  • Nov. 1 - Bought land for $21,000 cash.
  • Nov. 14 - Sold $2,000 of inventory for $9,500 cash.
  • Dec. 10 - Sold $3,500 of inventory for $18,000 on account.
  • Dec. 20 - Sold one-half of land for $12,000 in cash.
  • Dec. 31 - Paid a dividend of $2,000.

How much were Alamo Freeze's total net fixed assets at December 31, 2020?

Group of answer choices

$28,500

$27,750

$17,250

$38,250

None of the above

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

Recommended Textbook for

Payroll Accounting

Authors: Bernard J Bieg, Judith A Toland

24th Edition

1285437063, 9781285437064

More Books

Students also viewed these Accounting questions