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Kilgore Company experienced the following events during its first accounting period. (1) Issued common stock for $5,000 cash. (2) Earned $3,000 of cash revenue. (3) Paid a $4,000 cash to purchase land. (4) Paid cash dividends amounting to $400. (5) Paid $2,200 of cash expenses. The market value of the land at the end of the accounting period was $4,300. Based on this information the amount of total assets appearing on the year-end balance sheet is

User Dgmltn
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2 Answers

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Final answer:

The total assets on Kilgore Company's year-end balance sheet would be $5,700, calculated by adding the starting cash from issued stock and revenue, subtracting cash paid out for land, dividends, and expenses, and then adding the end market value of the land.

Step-by-step explanation:

To calculate the amount of total assets appearing on the year-end balance sheet for Kilgore Company, we would add together the value of all assets the company has at the end of the period. The company has received $5,000 cash from issuing common stock, earned $3,000 of cash revenue, purchased land for $4,000 (which has a market value of $4,300 at the end of the period), paid cash dividends amounting to $400, and incurred $2,200 of cash expenses.

The cash received from issuing stock and earning revenue is added to the company's assets, while cash used to pay dividends and for expenses is subtracted. However, to find the total assets, we also need to include the value of the land at the end of the accounting period. Therefore, the total assets equation for Kilgore Company is:

Starting Cash ($5,000 from stock + $3,000 revenue) - Cash Paid Out ($4,000 for land + $400 dividends + $2,200 expenses) + End Market Value of Land ($4,300) = Total Assets

$8,000 - $6,600 + $4,300 = $5,700

Therefore, the total assets on the year-end balance sheet would be $5,700.

User Ashik Vetrivelu
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5 votes

Answer: $5400

Step-by-step explanation:

An asset is a property or an item that is owned by an economic entity such as an individual or firm which has a value and can be used by its owner to meet obligations and liabilities.

Based on this information the amount of total assets appearing on the year-end balance sheet will be:

Cash Revenue - Cash expenses

= $5000 + $3000 - $4000 - $400 - $2200

= $1400

Land = $4000

Cash + Land

= $1400 + $4000

= $5400

User Bbfire
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