At the end of the first month of operations for SloMo Delivery Service,the business had the following accounts: Accounts Receivable,$1,200;Prepaid Insurance,$500;Equipment,$36,200 and Cash,$40,650.On the same date,SloMo owed the following creditors: Simpson Supply Company,$12,000;Allen Office Equipment,$9,500. The total assets for the SloMo Delivery Service are
A) $42,350.
B) $78,550.
C) $76,850.
D) $41,850.

Question

Quizplus · Accepted Answer

Total assets are calculated by adding all asset accounts: Accounts Receivable ($1,200) + Prepaid Insurance ($500) + Equipment ($36,200) + Cash ($40,650) = $78,550.

At the End of the First Month of Operations for SloMo