Question

assume a company's january 1, 20x1, financial position was: assets, $40,000 and liabilities, $15,000. during january 20x1, the company completed the following transactions: (a) paid on a note payable, $4,000 (no interest); (b) collected trade receivables, $4,000; (c) paid trade payables, $2,000; and (d) purchased a truck, $1,000 cash, and signed a note payable, $8,000. what is the company's january 31, 20x1 financial position?

Answer 1

The company's January 31, 20x1 financial position is assets: $45,000 and liabilities: $19,000.

Step-by-step explanation:

The company's January 31, 20x1 financial position can be determined by analyzing the effect of the transactions on the assets and liabilities.

1. (a) Paid on a note payable, $4,000: This decreases liabilities by $4,000.
2. (b) Collected trade receivables, $4,000: This increases assets by $4,000.
3. (c) Paid trade payables, $2,000: This decreases assets by $2,000.
4. (d) Purchased a truck, $1,000 cash, and signed a note payable, $8,000: This increases assets by $1,000 and liabilities by $8,000.

By considering all these transactions, the company's assets would be ($40,000 + $4,000 + $1,000) = $45,000, and its liabilities would be ($15,000 - $4,000 + $8,000) = $19,000.

Hence, the company's January 31, 20x1 financial position is assets: $45,000 and liabilities: $19,000.