Question

Bledsoe Company received $28,000 cash from the issue of stock on January 1, 2013. During 2013 Bledsoe earned $9,800 of revenue on account. The company collected $8,600 cash from accounts receivable and paid $6,700 cash for operating expenses. Based on this information alone, during 2013.
o Total assets increased by $39,700.
o Total assets increased by $1,900.
o Total assets increased by $31,100.
o Total assets did not change.

Answer 1

Answer:

Total assets increased by $31,100

Explanation:

Given that

Cash issue from stock = 28000

Earned revenue = 9800

Expenses = 6700

Thus,

Cash + revenue - operating expenses = assets

= 28000 + 9800 - 6700

= 37800 - 6700

= $31,100

Therefore, total assets increased by $31,100

Answer 2

Answer:

During 2013:

Total assets increased by $31,100.

Explanation:

Bledsoe Company received $28,000 cash from the issue of stock on January 1, 2013. Total assets increased by $28,000

Bledsoe earned $9,800 of revenue on account. Account receivable increased by $9,800. Total assets increased by $9,800

The company collected $8,600 cash from accounts receivable. Cash account increased by $8,600 and Account receivable decreased by $8,600. Total assets did not change.

The company paid $6,700 cash for operating expenses. Cash account decreased by $6,700. Total assets decreased by $6,700

During 2013:

Total assets increased = $28,000 + $9,800 - $6,700 = $31,100