During its first year of operations,a company entered into the following transactions: Borrowed $20,000 from the bank by signing a promissory note.
Issued stock to owners for $40,000.
Purchased $4,000 of supplies on account.
Paid $1,600 to suppliers as payment on account for the supplies purchased.
What is the amount of total assets at the end of the year?
A)$64,000
B)$22,400
C)$60,000
D)$62,400

Question

Quizplus · Accepted Answer

Total assets = Cash from borrowing of $20,000 + Cash from issuing stock of $40,000 + Supplies purchased $4,000 − Cash paid to suppliers of $1,600 = $62,400

During Its First Year of Operations,a Company Entered into the Following