Ann just purchased $8,000 of stock. She paid $7,000 in cash and borrowed the remaining $1,000 needed to pay for this purchase. If you constructed a balance sheet reflecting this transaction, the total assets would be:

Question

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The total assets would be $8,000, since that is the amount of stock Ann purchased. The fact that she borrowed some of the money does not affect the total assets. The $7,000 in cash would be reflected as part of the assets as well.

Ann Just Purchased $8,000 of Stock