X Company was formed on July 1, 2014, and had the following transactions during

Question

X Company was formed on July 1, 2014, and had the following transactions during the rest of 2014:

received $8,588 in cash contributions from the owners

purchased $8,648 worth of merchandise, all on account

sold merchandise that cost $7,450 for $10,643, all on account

paid $3,728 to suppliers for merchandise purchased on account

received $3,650 from customers for merchandise sold on account

paid $5,388 for land and equipment

borrowed cash from the bank in the amount of $4,263

What were total assets on December 31, 2014 (ignore depreciation on the equipment and interest on the loan)?

Explanation / Answer

                                  Cash Merchandise      Accounts receivable   land and equipment

Owners contribution            8,588

Purchase                                             8,648

Sale                                                  ( ,7450)                       10,643

Paid to suppliers              (3,728)

Receivable collected         3,650                                             (3,650)

Acquired land                  (5,388)                                                                               5,388

Borrowing                        4,263

Balance :                        7,385               1,198                       6,993                          5,388

Total Assets as on 31.12.2014    =   $ 20,964

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