Question

The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31, Year 1: Cash $ 1,800 Accounts receivable $ 1,050 Dividends 900 Common stock 1,375 Land 1,200 Revenue 1,200 Accounts payable 650 Expense 750 Retained earnings 2,475 What is the amount of total assets that will be reported on the balance sheet as of December 31, Year 1?

Answer 1

Answer:

$4,050

Explanation:

As we know the total assets are equal to total equity and liabilities.

In this question the Land, cash and Accounts receivable are included.

Land                                   $1,200

Cash                                   $1,800

Accounts receivable         $1,050

Total Assets                       $4,050

Common stock                  $1,375

Retained earnings $2,475

+Revenue               $1,200

-Expense                $750

-Dividends              $900  

                                           $2025

Accounts payable              $650  

Total equity & Liabilities    $4,050