Question

Use T-accounts to record the transactions below, which occur on March 12, 2021, close the T-accounts, and construct a balance sheet to answer the question. 1. Issue $80,000 in stock 2. Borrow $65,000 from a bank 3. Receive payment of $12,000 owed by a customer 4. Pay $6,000 owed to a supplier 5. Buy $17,000 worth of manufacturing supplies on credit What is the final amount in Total Assets

Answer 1

The final amount in Total Assets is:

= $156,000.

Step-by-step explanation:

a) Data and Analysis:

1. Cash $80,000 Common Stock $80,000

2. Cash $65,000 Bank Loan Payable $65,000

3. Cash $12,000 Accounts receivable $12,000

4. Accounts payable $6,000 Cash $6,000

5. Manufacturing supplies $17,000 Accounts payable $17,000

T-accounts

Cash

Account Titles Debit Credit

1. Common Stock $80,000

2. Bank Loan Payable 65,000

3. Accounts receivable 12,000

4. Accounts payable $6,000

Balance $151,000

Manufacturing supplies

Account Titles Debit Credit

5. Accounts payable $17,000

Common Stock

Account Titles Debit Credit

1. Cash $80,000

Bank Loan Payable

Account Titles Debit Credit

2. Cash $65,000

Accounts receivable

Account Titles Debit Credit

3. Cash $12,000

Accounts payable

Account Titles Debit Credit

4. Cash $6,000

5. Manufacturing supplies $17,000

Balance $11,000

Cash $151,000

Manufacturing supplies 17,000

Common stock $80,000

Bank loan payable 65,000

Accounts receivable 12,000

Accounts payable 11,000

Total $168,000 $168,000

Balance Sheet:

Assets:

Cash $151,000

Manufacturing supplies 17,000

Accounts receivable (12,000)

Total assets $156,000