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29 September, 03:41

Park & Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,200 from a local bank, purchased $1,120 of supplies on account, and also purchased $6,200 of equipment by paying $2,120 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are:

a) $14,600.

b) $12,400.

c) $11,520.

d) $9,400.

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  1. 29 September, 04:02
    0
    a) $14,600.

    Explanation:

    The computation of the company total assets are shown below:

    = Cash balance + supplies balance + equipment balance

    where,

    Cash balance = investment amount + borrowed amount - paid amount for equipment

    = $6,200 + $3,200 - $2,120

    = $7,280

    And, the other item values would remain the same

    Now put these values to the above formula

    So, the value would equal to

    = $7,280 + $1,120 + $6,200

    = $14,600
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