At the beginning of Apri, Werren Corporation\'s assets totaled $253,000 and liab
ID: 2331427 • Letter: A
Question
At the beginning of Apri, Werren Corporation's assets totaled $253,000 and liabilities totaled $73000. During April the following summarized transactions occurred Additional shares of stock were sold for $26,500 cash A building costing $108.000 was purchased using $16,500 cash and by signing an $91,500 long-term note payable Short-term investments costing $10,300 were purchased using cash $11300 was paid to an employee as a loan, the employee signed a sik-month note in exchange for the loan. How much are Warren's total assets at the end of Aprit?Explanation / Answer
Answer
---Figures within “( )” denote ‘decrease in balances’---
Transaction no.
Transaction
ASSETS
LIABILITIES
EQUITY
Beginning Balance
$ 253,000.00
$ 73,000.00
$ 180,000.00
1
Additional shares of stock sold for Cash
$ 26,500.00 [Cash increased]
[No effect]
$ 26,500.00 [Common Stock increased]
2
Building Purchased
$ 108,000.00 [Building increased]
$ 91,500.00 [Accounts payable increased]
[No effect]
$ (16,500.00) [Cash decreased]
3
Short Term Investment purchased for Cash
$ 10,300.00 [Investment increased]
[No effect]
[No effect]
$ (10,300.00) [Cash decreased]
4
Loan to Employee
$ (11,300.00) [Notes receivables increased]
[No effect]
[No effect]
$ 11,300.00 [Cash decreased]
Ending Balance
$ 371,000.00 = ANSWER
$ 164,500.00
$ 206,500.00
Transaction no.
Transaction
ASSETS
LIABILITIES
EQUITY
Beginning Balance
$ 253,000.00
$ 73,000.00
$ 180,000.00
1
Additional shares of stock sold for Cash
$ 26,500.00 [Cash increased]
[No effect]
$ 26,500.00 [Common Stock increased]
2
Building Purchased
$ 108,000.00 [Building increased]
$ 91,500.00 [Accounts payable increased]
[No effect]
$ (16,500.00) [Cash decreased]
3
Short Term Investment purchased for Cash
$ 10,300.00 [Investment increased]
[No effect]
[No effect]
$ (10,300.00) [Cash decreased]
4
Loan to Employee
$ (11,300.00) [Notes receivables increased]
[No effect]
[No effect]
$ 11,300.00 [Cash decreased]
Ending Balance
$ 371,000.00 = ANSWER
$ 164,500.00
$ 206,500.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.