Question

Charlie Corporation's adjusted trial balance included the following items (all account balances are normal): Accounts payable $65,000, Accounts receivable $49,000, Capital stock $100,000, Cash $50,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $2,000, Inventory $36,000, Notes payable $80,000, Prepaid expenses $5,000, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. How much are total assets?

Answer 1

$293,000

Step-by-step explanation:

The total assets comprises of current assets, fixed assets , and the intangible assets

The current assets includes cash, stock, account receivable, etc

Fixed assets include plant & machinery, land, equipment, furniture & fittings, etc.

And, the intangible assets include patents, copyrights, goodwill, etc.

In this question, we apply the accounting equation which is shown below:

Total assets = Total liabilities + Shareholder equity

where,

Total liabilities = Accounts payable + Interest payable + Notes payable

= $65,000 + $2,000 + $80,000

=$ 147,000

And, the shareholder equity equals to

= Capital stock + retained earnings

= $100,000 + $46,000

= $146,000

Now put these values to the above formula

So, the value would equal to

= $147,000 + $146,000

= $293,000