Question

Bledsoe Company acquired $35,000 cash by issuing common stock on January 1, Year 1. During Year 1, Bledsoe earned $10,500 of revenue on account. The company collected $10,000 cash from customers in partial settlement of its accounts receivable and paid $7,400 cash for operating expenses. Based on this information alone, what was the impact on total assets during Year 1?
A. Total assets increased by $38.500.
B. Total assets increased by $1800.
C. Total assets increased by $30100.
D. Total asset did not change.

Answer 1

Answer:

Total Assets Increased by $38,100

Explanation:

Calculation for the impact on total assets during Year 1

Using this formula

Impact on total assets during Year 1=Cash+Revenue-Cash paid for operating expenses

Let plug in the formula

Impact on total assets during Year 1=$35,000+$10,500-$7,400

Impact on total assets during Year 1=$=38,100 increase

Therefore the impact on total assets during Year 1 is that the Total Assets will Increased by $38,100