Question

What is the amount of total assets at the end of the period?

1. Acquired $30,000 cash from the issue of common stock.
2. Purchased inventory for $18,000 cash.
3. Sold inventory costing $15,000 for $32,000 cash.

Answer 1

The total assets at the end of the period, based on the given transactions, amount to $33,000.

Step-by-step explanation:

To determine the amount of total assets at the end of the period, we need to calculate the changes in assets based on the given transactions.

1. The acquisition of $30,000 cash from the issue of common stock results in an increase in cash assets by $30,000.
2. The purchase of inventory for $18,000 cash results in a decrease in cash assets by $18,000 and an increase in inventory assets by $18,000.
3. The sale of inventory costing $15,000 for $32,000 cash results in an increase in cash assets by $32,000 and a decrease in inventory assets by $15,000.

To calculate the total assets at the end of the period, we need to add up the changes in different asset accounts. In this case, we have an increase of $30,000 in cash assets, an increase of $18,000 in inventory assets, and a decrease of $15,000 in inventory assets. Therefore, the total assets at the end of the period would be $(30,000 + 18,000 - 15,000) = $33,000.