During its first year of operations, a company entered into the following transactions:
-Borrowed $5,000 from the bank by signing a promissory note.
-Issued stock to owners for $10,000.
-Purchased $1,000 of supplies on account.
-Paid $400 to suppliers as payment on account for the supplies purchased.
-Use the information above to answer the following question.What is the amount of total assets at the end of the year?
A) $16,000.
B) $5,600.
C) $15,000.
D) $15,600.

Question

Quizplus · Accepted Answer

At the end of the year, the total assets can be calculated as follows:

Cash (borrowed from the bank) = $5,000
Supplies (purchased on account) = $1,000
Stock issued to owners = $10,000

Therefore, the total assets = $5,000 + $1,000 + $10,000 = $15,000

So, the correct answer is D.

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