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6 January, 14:30

Shane's Catering began with cash of $10,000. Shane then bought supplies for $2,300 on account. Separately, Shane paid $7,500 for equipment. Answer these questions a. How much in total assets does Shane have? b. How much in liabilities does Shane owe? a. How much in total assets does Shane have? Shane has $ in total assets, b. How much in liabilities does Shane owe? Shane owes SL in liabilities

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  1. 6 January, 14:34
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    Part (a) Shane has $ 12,300 in total assets

    Part (b) Shane owes $ 2,300 in liabilities

    Explanation:

    Shane's Catering began with cash of $10,000

    At the beginning the Accounting Records of Shane should reflect the following Account Balances

    Cash $10000 (debit)

    Owners Equity $ 10000 (credit)

    Shane then bought supplies for $2,300 on account.

    When Shane buys supplies on account the transaction is recorded as follows

    Inventory $2300 (debit)

    Account Receivable $ 2300

    Shane paid $7,500 for equipment

    When Shane pays for equipment in cash the transaction is recorded as follows

    Equipment $7500 (debit)

    Cash $7500 (credit)

    Balance of Assets is calculated as:

    Cash 10000+Inventory 2300 - Cash 7500 + Equipment 7500 = $12300

    Balance of Liabilities is calculated as:

    Trade Receivable $ 2300
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Home » Business » Shane's Catering began with cash of $10,000. Shane then bought supplies for $2,300 on account. Separately, Shane paid $7,500 for equipment. Answer these questions a. How much in total assets does Shane have? b.
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