Question

on January 1 Lumia company liabilities are $67,000 and it's equity is $47,000 on January 3 Lumia purchase and install solar panel assets costing $17,000. For the panels Lumia pays $7,500 cash and promises to pay the remaining $9,500 in six months what is the total of Lumia asset after the solar panel purchase​

Answer 1

Answer: the total assets of Lumia after the solar panel purchase would be $131,000.

Step-by-step explanation:

After the solar panel purchase, the total assets of Lumia can be calculated by adding the value of the solar panel asset to the existing assets.

Given information:

Liabilities on January 1: $67,000

Equity on January 1: $47,000

Cost of solar panel assets: $17,000

Cash payment for solar panel assets: $7,500

Promised payment for solar panel assets: $9,500 (to be paid in six months)

To calculate the total assets after the solar panel purchase, we need to consider the cash payment made and the remaining promised payment.

Cash payment for the solar panel assets: $7,500

The remaining promised payment will be recorded as an accounts payable (liability) until it is paid in six months.

Therefore, the total assets after the solar panel purchase can be calculated as follows:

Total Assets = Existing Assets + Cost of Solar Panel Assets

= Equity + Liabilities + Cost of Solar Panel Assets

= $47,000 + $67,000 + $17,000

= $131,000