Question

Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:

1. Acquired $29,000 cash from the issue of common stock.
2. Borrowed $41,000 cash from National Bank.
3. Earned cash revenues of $57,000 for performing services.
4. Paid cash expenses of $49,500.
5. Paid a $1,900 cash dividend to the stockholders.
6. Acquired an additional $29,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $52,000 cash to purchase land.
9. Determined that the market value of the land is $73,000.

b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.

Answer 1

Answer
Transaction #		Total Assets
1	Cash increased	$       29,000
2	Cash increased	$       41,000
3	Cash increased by cash revenue	$       57,000
4	Cash decreased by expenses paid	-$       49,500
5	Cash decreased by amt of dividend	-$         1,900
6	Cash received from issue of stock	$       29,000
7	Cash paid to reduce liability	-$       10,000
8	no effect on Total Assets	$               -
9	Will not be considered for accounting	$               -
	TOTAL ASSETS	$       94,600

Amount of total assets that Maben would report on the December 31, Year 1, balance sheet is $ 94,600.