Question

Clem Corporation issues 1,000 shares of common stock for $25,000. Clem purchased equipment for $10,000 by borrowing from the bank. Clem's total assets are_________.

Answer 1

Answer:

$35,000

Explanation:

We know that

Total assets = Total liabilities + stockholder equity

And, The common stock shares are issued for $25,000 and plus equipment is also purchased via borrowing from the bank for $10,000

So, the total assets by applying the accounting equation is

= Issuance of the common stock + Bank borrowed amount

= $25,000 + $10,000

= $35,000