As of December 31,2009,Bueno Company had $1,000 in liabilities,$8,000 in common stock,and $2,500 in retained earnings.The total amount of assets on that date is
A) $10,000.
B) $12,500.
C) $11,500.
D) $7,500.

Question

Quizplus · Accepted Answer

The accounting equation is Assets = Liabilities + Stockholders' Equity. Therefore, we can calculate the total assets of Bueno Company as follows:

Assets = Liabilities + Common Stock + Retained Earnings
Assets = $1,000 + $8,000 + $2,500
Assets = $11,500

Therefore, the best choice is C, $11,500.

As of December 31,2009,Bueno Company Had $1,000 in Liabilities,$8,000 in Common