Answer: a. $240,116
Explanation:
The following are considered assets in the above question.
Accounts Receivable $81,336
Cash $73,324
Inventories $25,816
Properties and Equipment $54,128
Supplies $5,512
So adding them up we have,
= 81,336 + 73,324 + 25,816 + 54,128 + 5,512
= $240,116
$240,116 is the amount of Total Assets on the Balance Sheet so option A is correct.
NB - Supplies are considered Assets when they are significant.
Answer:
a. $240,116
Explanation:
The balance sheet has two sides, assets and Liabilities side and both sides must always equal each other.The assets include items such as cash supplies inventories , and other resources which have expected future benefits.
Liability accounts are claims against assets which means they are obligations to transfer assets or provide product or services to other entities. Equity is the owner's residual interest in the assets after deducting liabilities.
The Balance Sheet
Cash $73,324
Supplies $5,512
Inventories $25,816
Accounts Receivable $81,336
Properties and Equipment $54,128
Total Assets $ 240116
Accounts Payable $19,207
Wages Payable $12,880
Income Tax Payable $3,512
Long-term Liabilities $1,709
Stockholder's Equity $202,808
Total Liabilities and Owner's Equity $ 240116
So we see that both sides are equal so choice a is the best option.
