Question

The Balance Sheet of Greene, Inc. on January 1, 20X1 showed the following. Assets $30,000, Liabilities $20,000 and Stockholder's Equity $10,000. During 20X1, Greene collected $30,000 in revenue, paid $34,000 in expenses, purchased $15,000 in additional assets on account. The stockholders invested an additional $10,000 cash in the business. What are Greene's total assets at December 31, 20X1?
A. 55,000
B. 51,000
C. 41,000
D. 45,000

Answer 1

Answer:

B. 51,000

Explanation:

The computation of the total assets at the end of the year is shown below:

= Opening balance of asset account + revenue collected - expenses incurred + additional assets purchased + additional cash invested in the business

= $30,000 + $30,000 - $34,000 + $15,000 + $10,000

= $51,000

Simply we deduct the expenses incurred and the rest of the items are to be added in the beginning balance of asset account so that the accurate amount can come.