X Company was formed on July 1, 2014, and had the following transactions during
ID: 2502105 • Letter: X
Question
X Company was formed on July 1, 2014, and had the following transactions during the rest of 2014: received $8,593 in cash contributions from the owners purchased $8,497 worth of merchandise, all on account sold merchandise that cost $7,060 for $10,085, all on account paid $3,302 to suppliers for merchandise purchased on account received $3,837 from customers for merchandise sold on account paid $5,038 for land and equipment borrowed cash from the bank in the amount of $4,215 What were total assets on December 31, 2014 (ignore depreciation on the equipment and interest on the loan)?Explanation / Answer
Total Assets on DEc 31, 2014
Cash = 8593+3025-3302+3837-5038-4215 =$ 2900
Cash =cash contributon from owner +Add GAin on sale of merchandise- cash paid for purchase of mechandise+cash eceived on sale of merchandise-cash paid for purchase of land and equpment-cash borowed as loan.
Merchandise = Purchases - sales = 8497-7060 = 1437
LAnd And Equipment =$5038.
Total Assets
cash = $2900
Merchandise = $1437
land and equipment = $5038
Total Assets = $9375
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