Question
Statement of financial position at the start of the week: ASSETS $ Property 160,000 Office Equipment 90,000 Inventories 32,000 Trade receivables 45,000 Total assets 327,000
Statement of financial position at the start of the week:
ASSETS | $ |
Property | 160,000 |
Office Equipment | 90,000 |
Inventories | 32,000 |
Trade receivables | 45,000 |
Total assets | 327,000 |
EQUITY AND LIABILITIES | $ |
Equity | 230,000 |
Short-term borrowing | 55,000 |
Trade payables | 42,000 |
Total equity and liabilities | 327,000 |
Transactions:
(a) Sold inventories for $14,000 cash; these inventories had cost $11,000.
(b) Sold inventories for $22,000 on credit; these inventories had cost $16,000.
(c) Received cash from trade receivables totaling $19,000.
(d) The owners of the business introduced $130,000 of their own money, which was placed in the business bank account.
(e) The owners bought a motorbike, valued at $13,000, into the business.
(f) Bought inventories on credit for $15,000.
(g) Paid trade payables $11,000.
Required:
Show the statement of financial position after all of these transactions have been reflected.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started