Question

Using the information below calculate the ending total asset of Lisa Inc.  Lisa Inc raises $3,000 of shareholders’ equity.  Lisa Inc purchases a building worth $300 for cash.  Lisa Inc takes out a loan for $500 and receives cash.  Lisa Inc purchases $300 of inventories, the supplier gives her credit.

Answer 1

Answer:

The ending total asset is $3,800

Explanation:

 Lisa Inc raises $3,000 of shareholders’ equity.  This movement increase the assets,  because the $3,000 increase in the shareholders’ equity will affect the asset

 Lisa Inc purchases a building worth $300 for cash. Won´t modifies the assets ,  decrease cash but increase buildings

 Lisa Inc takes out a loan for $500 and receives cash. Increase assets (cash) , increase Liabilities (Accounts Payable)

 Lisa Inc purchases $300 of inventories, the supplier gives her credit. Increase assets (inventory) , increase Liabilities (Notes Payable)

Asset= $3,000+$500+$300=$3,800