The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: What is the amount of total assets that will be reported on the balance sheet as of December 31, Year 1?
A)$12,600
B)$13,800
C)$7,200
D)$10,600

Question

The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1:  What is the amount of total assets that will be reported on the balance sheet as of December 31, Year 1?
A)$12,600 
B)$13,800 
C)$7,200 
D)$10,600

Quizplus · Accepted Answer

The total assets can be identified by adding up the current assets and long-term assets. In this case, the current assets are $7,200 (cash) + $2,400 (accounts receivable) + $1,000 (inventory) = $10,600. The long-term assets are $0 (no information about property, plant, and equipment or intangible assets). Therefore, the total assets would be $10,600 (current assets) + $0 (long-term assets) = $10,600.

The Following Pre-Closing Accounts and Balances Were Drawn from the Records