Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Statement of financial position at the start of the week: ASSETS $ Property 720,000 Office Equipment 310,000 Inventories 230,000 Trade Receivables 220,000 Total assets 1,480,000
Statement of financial position at the start of the week:
ASSETS | $ |
Property | 720,000 |
Office Equipment | 310,000 |
Inventories | 230,000 |
Trade Receivables | 220,000 |
Total assets | 1,480,000 |
EQUITY AND LIABILITIES | $ |
Equity | 1,080,000 |
Short-term Borrowing | 260,000 |
Trade Payables | 220,000 |
Total equity and liabilities | 1,480,000 |
Transactions:
- Sold inventories for $74,000 cash; these inventories had cost $64,000.
- Sold inventories for $80,000 on credit; these inventories had cost $70,000.
- Received cash from trade receivables totaling $86,000.
- The owners of the business introduced $330,000 of their own money, which was placed in the business bank account.
- The owners bought new workstations, valued at $55,000, into the business.
- Bought inventories on credit for $95,000.
- Paid trade payables $90,000.
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