Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Statement of financial position at the start of the week: ASSETS $ Property 320,000 Office Equipment 105,000 Inventories 65,000 Trade Receivables 55,000 Total assets 545,000

Statement of financial position at the start of the week:

ASSETS

$

Property

320,000

Office Equipment

105,000

Inventories

65,000

Trade Receivables

55,000

Total assets

545,000

EQUITY AND LIABILITIES

$

Equity

400,000

Short-term Borrowing

90,000

Trade Payables

55,000

Total equity and liabilities

545,000

Transactions:

  1. Sold inventories for $24,000 cash; these inventories had cost $19,000.
  2. Sold inventories for $29,000 on credit; these inventories had cost $21,000.
  3. Received cash from trade receivables totaling $23,000.
  4. The owners of the business introduced $130,000 of their own money, which was placed in the business bank account.
  5. The owners bought a computer server, valued at $14,000, into the business.
  6. Bought inventories on credit for $24,000.
  7. Paid trade payables $19,000.

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

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

Accounting Information System

Authors: James A. Hall

7th Edition

978-1439078570, 1439078572

More Books

Students also viewed these Accounting questions