A company was formed with $300,000 cash contributed by its owners in exchange for common stock.The company borrowed $150,000 from a bank.The company purchased $50,000 of inventory and paid cash for it.The company also purchased $350,000 of equipment by paying $50,000 in cash and issuing a note for the remainder. What is the amount of the total assets to be reported on the balance sheet?
A)$750,000
B)$800,000
C)$450,000
D)$400,000

Question

Quizplus · Accepted Answer

Cash from owners of $300,000 + Cash from borrowing of $150,000 + Inventory purchased for $50,000 − Cash paid for inventory of $50,000 + Equipment purchased for $350,000 − Cash paid for equipment of $50,000 = $750,000

A Company Was Formed with $300,000 Cash Contributed by Its