Question

Reliable Waterworks provides plumbing services. Transactions of Reliable Waterworks during the first year of operations are given below. a) The owner, Steve Sharon, contributed $11,000 cash to form the business. b) Paid $1,400 for equipment to be used for plumbing repairs. c) Borrowed $15,000 from a local bank and deposited the money in the checking account. d) Paid $100 in rent for the year. e) Paid $400 for plumbing supplies to be used on various jobs next year. f) Completed a plumbing repair for a law firm and received $3,200. Calculate the amount of total assets at the end of the first year. Assume the plumbing supplies of $3,200 are left at the end of the year.

Answer 1

Answer:

$30,900

Explanation:

Assets are major components of the statement of financial position. They are defined as anything owned by a company as a result of past activities that result to an inflow of economic benefits

                     Cash    Asset    Liability     Expenses  

Capital        11000     11000

Equipment    (1400)    1400                      

Loan             15000    15000     15000

Rent               (100)      (100)                           100

Inventory       (400)      400

Sales             3200      3200

Total                            30900     15000