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30 September, 08:24

A company reported the following in its recent balance sheet:

Accounts Payable $19,207

Accounts Receivable $81,336

Cash $73,324

Income Tax Payable $3,512

Inventories $25,816

Long-term Liabilities $1,709

Properties and Equipment $54,128

Stockholder's Equity $202,808

Supplies $5,512

Wages Payable $12,880

What is the amount of Total Assets on the Balance Sheet?

a. $240,116

b. $259,323

c. $234,604

d. $442,924

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Answers (2)
  1. 30 September, 09:33
    0
    Answer: a. $240,116

    Explanation:

    The following are considered assets in the above question.

    Accounts Receivable $81,336

    Cash $73,324

    Inventories $25,816

    Properties and Equipment $54,128

    Supplies $5,512

    So adding them up we have,

    = 81,336 + 73,324 + 25,816 + 54,128 + 5,512

    = $240,116

    $240,116 is the amount of Total Assets on the Balance Sheet so option A is correct.

    NB - Supplies are considered Assets when they are significant.
  2. 30 September, 11:47
    0
    a. $240,116

    Explanation:

    The balance sheet has two sides, assets and Liabilities side and both sides must always equal each other. The assets include items such as cash supplies inventories, and other resources which have expected future benefits.

    Liability accounts are claims against assets which means they are obligations to transfer assets or provide product or services to other entities. Equity is the owner's residual interest in the assets after deducting liabilities.

    The Balance Sheet

    Cash $73,324

    Supplies $5,512

    Inventories $25,816

    Accounts Receivable $81,336

    Properties and Equipment $54,128

    Total Assets $ 240116

    Accounts Payable $19,207

    Wages Payable $12,880

    Income Tax Payable $3,512

    Long-term Liabilities $1,709

    Stockholder's Equity $202,808

    Total Liabilities and Owner's Equity $ 240116

    So we see that both sides are equal so choice a is the best option.
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