Total assets = Initial cash + Cash obtained by Bank borrowing + Inventory - Cash paid for
inventory + Equipment - Cash paid for equipment
= $(61,500 + 31,500 + 11,500 - 11,500 + 71,500 - 10,000)
= $154,500
Total liability = Bank borrowing + Note payable against equipment
= $(31,500 + 61,500) = $93,000
Common stock is an Equity account, not reported under total liabilities.
Solution
Total assets = Initial cash + Cash obtained by Bank borrowing + Inventory - Cash paid for
inventory + Equipment - Cash paid for equipment
= $(61,500 + 31,500 + 11,500 - 11,500 + 71,500 - 10,000)
= $154,500
Total liability = Bank borrowing + Note payable against equipment
= $(31,500 + 61,500) = $93,000
Common stock is an Equity account, not reported under total liabilities..
Total assets = Initial cash + Cash obtained by Bank borrowing + Inve.pdf
1. Total assets = Initial cash + Cash obtained by Bank borrowing + Inventory - Cash paid for
inventory + Equipment - Cash paid for equipment
= $(61,500 + 31,500 + 11,500 - 11,500 + 71,500 - 10,000)
= $154,500
Total liability = Bank borrowing + Note payable against equipment
= $(31,500 + 61,500) = $93,000
Common stock is an Equity account, not reported under total liabilities.
Solution
Total assets = Initial cash + Cash obtained by Bank borrowing + Inventory - Cash paid for
inventory + Equipment - Cash paid for equipment
= $(61,500 + 31,500 + 11,500 - 11,500 + 71,500 - 10,000)
= $154,500
Total liability = Bank borrowing + Note payable against equipment
= $(31,500 + 61,500) = $93,000
Common stock is an Equity account, not reported under total liabilities.
