Question

Bartex, a new company completed these transactions

1. Stockholders invested $53,000 cash and inventory with a fair value of $25,000
2. Sales on account $23,000
what will Bartex total assets equal?

Answer 1

Bartex's total assets equal $101,000, calculated by adding the initial cash investment of $53,000, inventory valued at $25,000, and sales on account totaling $23,000.

Step-by-step explanation:

To determine Bartex's total assets, we need to add up all the individual asset components. Initially, the stockholders invest $53,000 in cash and inventory with a fair value of $25,000. These two contributions are direct additions to the company's assets. Next, Bartex makes sales on account, which means it sells goods or services to be paid for at a later date, amounting to $23,000. This action creates an account receivable, which is an asset. Therefore, to calculate the total assets of Bartex after these transactions, we add cash, inventory, and accounts receivable together:

• Cash: $53,000
• Inventory: $25,000
• Accounts Receivable (Sales on account): $23,000

The sum of these figures results in a total assets value of:

$53,000 (Cash) + $25,000 (Inventory) + $23,000 (Accounts Receivable) = $101,000.

Thus, after completing the stated transactions, Bartex's total assets equal $101,000.