Using the information below calculate the ending total asset of Lisa Inc.  Lisa Inc raises $3,000 of shareholders' equity.  Lisa Inc purchases a building worth $300 for cash.  Lisa Inc takes out a loan for $500 and receives cash.  Lisa Inc purchases $300 of inventories, the supplier gives her credit.

Question

Marcelo Beard

Business

22 February, 10:31

Using the information below calculate the ending total asset of Lisa Inc.  Lisa Inc raises $3,000 of shareholders' equity.  Lisa Inc purchases a building worth $300 for cash.  Lisa Inc takes out a loan for $500 and receives cash.  Lisa Inc purchases $300 of inventories, the supplier gives her credit.

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Jaylin Parsons · Answer 1

The ending total asset is $3,800

Explanation:

 Lisa Inc raises $3,000 of shareholders' equity. This movement increase the assets, because the $3,000 increase in the shareholders' equity will affect the asset

 Lisa Inc purchases a building worth $300 for cash. Won't modifies the assets, decrease cash but increase buildings

 Lisa Inc takes out a loan for $500 and receives cash. Increase assets (cash), increase Liabilities (Accounts Payable)

 Lisa Inc purchases $300 of inventories, the supplier gives her credit. Increase assets (inventory), increase Liabilities (Notes Payable)

Asset = $3,000+$500+$300=$3,800