Question

On January 1, Kirk Corporation had total assets of $860,000. During the month, the following activities occurred: -. Kirk Corporation acquired equipment costing $7,000, promising to pay cash for it in 60 days. -. Kirk Corporation purchased $3,600 of supplies for cash. -. Kirk Corporation sold land which it had acquired 2 years ago. The land had cost $16,000 and it was sold for $16,000 cash. -. Kirk Corporation signed an agreement to rent additional storage space next month at a charge of $1,100 per month. What is the amount of total assets of Kirk Corporation at the end of the month?

Answer 1

Answer:

$867,000

Explanation:

Assets are economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.

The Amount of Total Assets Available is calculated as follows:

Beginning Balance                                $860,000

Equipment Acquired                                  $7,000

Supplies Inventory                                     $3,600

Cash payment for Supplies                      ($3,600)

Cost of Land sold                                     ($16,000)

Cash Proceeds from the sale of land      $16,000

Total Assets                                            $867,000