Question

If the Notes Payable balance is $25,000, then the total assets of Gordon, Incorporated at December 31, Year 1 amount to:

1) $137,500
2) $156,250
3) $168,750
4) $193,750

Answer 1

The total assets of Gordon, Incorporated at December 31, Year 1 cannot be determined with the given information.

Step-by-step explanation:

A balance sheet provides a snapshot of a company's financial position. To calculate the total assets of Gordon, Incorporated at December 31, Year 1, you need to consider both the liabilities and the equity. In this case, the Notes Payable balance of $25,000 is part of the liabilities section of the balance sheet. Assuming there are no other liabilities, you would need to add the Notes Payable of $25,000 to the equity to calculate the total assets.

However, since the equity is not given in the question, it is not possible to determine the total assets with the information provided.