Question

Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question.

1. Sell, deliver, and receive payment of $20,000 for service 2. Consume good or service and pay expense of $2,000 3. Sell product for $25,000 in cash with historical cost of $20,000

What is the final amount in Total Assets?

Please specify your answer in the same units as the balance sheet

Answer 1

Cash
Mar 12, 2018	$20,000	$2,000	Mar 12, 2018		Income Statement
Mar 12, 2018	25,000				Revenues
Balance	$43,000				Sales revenue	25000
Service Revenue					Service Revenue	20000
		$20,000	Mar 12, 2018				45000
					Less: Expenses
					Cost of ggoods sold	20000
Sales Revenue					Consumbable expense	2000
		$25,000	Mar 12, 2018				22000
					Net Income		23000
Consumable Expense
Mar 12, 2018	$          2,000				Balance sheet
					Assets:
Cost of goods sold					Cash	43000
Mar 12, 2018	$        20,000				Total assets	43000
					Liabilities and equity
Inventory					Accounts payable	20000
Mar 12, 2018	$        20,000	$        20,000	Mar 12, 2018		Retained earning	23000
					Total liabilities and equity	43000
Accounts Payable
		$20,000	Mar 12, 2018		So Total assets should be $43,000 under this asumption
					If we assume the cost of goods sold is also paid in cash it might change
Note: For want of information, it is assumed the Cost of sales					To $23000
of $20000 is purchased on account and finished.