Question

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

Answer 1

Answer: $5400

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