Question

Assume that, after analyzing its business transaction, a firm has the following ending balances: accounts payable $3,400, accounts receivable $2,000, cash $1,000, capital $3,600, equipment $3,000, prepaid rent $600, and supplies $400. What is the total amount of assets that will be reported on the firm’s balance sheet?

Answer 1

Total Assets = $7,000

Step-by-step explanation:

Total assets are sum of fixed and current assets

Fixed assets = Assets held for a period more than a year.

Here Equipment is fixed asset with a value of $3,000

Current Assets = Accounts Receivable, Cash balance, Prepaid rent, Supplies

= $2,000 + $1,000 + $600 + $400

=$4,000

Total assets = $3,000 + $4,000 = $7,000