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25 August, 06:24

Tustin's Catering began with cash of $15,000. Tustin then bought supplies for $2,300 on account. Separately, Tustin paid $4,700 for equipment.

Required:

a. How much in total assets does Tustin have?

b. How much in liabilities does Tustin owe?

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Answers (1)
  1. 25 August, 06:46
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    a. Total assets=$15,000

    b. Liabilities=$2,300

    Explanation:

    a. The total assets of the Tustin's Catering shall be determined through following mentioned equation:

    Total assets=Cash+equipment

    = ($15,000-$4,700) + $4,700=$15,000

    b. The total liabilities of the Tustin's Catering shall be determined as follows:

    Liabilities=Supplier bought on account

    ==$2,300
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