Question

Consider the following information:

Cash: $10,000
Accounts Receivable: $7,000
Office Supplies: $2,000
Prepaid Insurance: $3,000
Buildings: $150,000
Accumulated Depreciation: ($30,000)

Accounts Payable: $5,000
Notes Payable: $30,000
Owner's Equity: $107,000

From the above set of data, what is the total for assets, liabilities, and equity?

a.
Total Assets: $142,000
Total Liabilities: $35,000
Total Equity: $107,000

b.
Total Assets: $172,000
Total Liabilities: $35,000
Total Equity: $137,000

c.
Total Assets: $152,000
Total Liabilities: $35,000
Total Equity: $117,000

d.
Total Assets: $167,000
Total Liabilities: $30,000
Total Equity: $137,000

Answer 1

Answer: a. Total Assets: $142,000

Total Liabilities: $35,000

Total Equity: $107,000

Step-by-step explanation:

Total Assets = Fixed assets + Current assets

Fixed assets = Building + Depreciation

= $150000 - ($30000)

= $120000

Current assets = Cash + Accounts Receivable + Office Supplies + Prepaid Insurance

= $10,000 + $7,000 + $2,000 + $3,000

= $22000

Total assets = $120000 + $22000 = $142000

Total Liabilities = Accounts Payable + Notes payable

= $5,000 + $30,000

= $35000

Owner's Equity: $107,000

Therefore, the answer is

Total Assets: $142,000

Total Liabilities: $35,000

Total Equity: $107,000