On January 1,Kirk Corporation had total assets of $425,000.During the month,the following activities occurred: Kirk Corporation acquired equipment costing $3,000,promising to pay cash for it in 60 days.
Kirk Corporation purchased $1,750 of supplies for cash.
Kirk Corporation sold land,which it had acquired 2 years ago.The land had cost $7,500 and it was sold for $7,500 cash.
Kirk Corporation signed an agreement to rent additional storage space next month at a charge of $500 per month.
What is the amount of total assets of Kirk Corporation at the end of the month?
A)$429,750
B)$428,000
C)$418,750
D)$420,000

Question

Quizplus · Accepted Answer

Beginning total assets of $425,000 + Equipment purchased of $3,000 + Supplies purchased of $1,750 − Cash paid for supplies $1,750 + Cash received from sale of land of $7,500 − Land sold of $7,500 = $428,000
Signing a rental agreement is not an accounting transaction since there was no exchange involving assets,liabilities,and/or stockholders' equity between the company and someone else.

On January 1,Kirk Corporation Had Total Assets of $425,000