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 500,000 Office Equipment 200,000 Inventories 120,000 Trade Receivables 120,000 Total assets 940,000

Statement of financial position at the start of the week:

ASSETS

$

Property

500,000

Office Equipment

200,000

Inventories

120,000

Trade Receivables

120,000

Total assets

940,000

EQUITY AND LIABILITIES

$

Equity

690,000

Short-term Borrowing

150,000

Trade Payables

100,000

Total equity and liabilities

940,000

Transactions:

  1. Sold inventories for $50,000 cash; these inventories had cost $40,000.
  2. Sold inventories for $54,000 on credit; these inventories had cost $44,000.
  3. Received cash from trade receivables totaling $58,000.
  4. The owners of the business introduced $220,000 of their own money, which was placed in the business bank account.
  5. The owners bought a server, valued at $15,000, into the business.
  6. Bought inventories on credit for $45,000.
  7. Paid trade payables $42,000.

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

Financial Accounting for Decision Makers

Authors: Peter Atrill, Eddie McLaney

6th Edition

273763451, 273763458, 978-0273763451

More Books

Students also viewed these Accounting questions

Question

Understand the concept of strategic fi t.

Answered: 1 week ago