Question

XYZ Company began operations in May, 2022 by selling common stock to
owners in exchange for $90,000 cash. During 2022, ABC Company entered
into the following transactions:

1.  On May 23, ABC Company purchased inventory for $50,000 cash.

2.  On June 1, ABC Company purchased a three-year insurance policy
    for $32,400 cash.

3.  On July 1, ABC Company received $49,000 cash from a customer
    for services to be performed over the next 8 months.

4.  On August 1, ABC Company purchased equipment costing $60,000 by
    paying $20,000 in cash and agreeing to pay the remainder within
    six months. The equipment was given a 10-year life and a $4,200
    residual value.

5.  On August 18, ABC Company sold one-half of the inventory that
    was purchased on May 23 to a customer for $44,000 cash.

Calculate the amount of total assets that ABC Company would report in
its December 31, 2022 balance sheet after all the above transactions
are recorded and all necessary adjusting entries are made and posted. 

Answer 1

St. No. DO 90002 SO 000 Inventory To cash 06) 32400 boercive boswamie To casw 32400 3. 49000 Caew To All Dr Services rev. accrued 49 49000 booms 20000 400 Equipment Olc br 10 crow To Royable Cash To inventory To Profit I 44000 - 25000 19000 Adj Wolin en hy v on 10 5 morts. Depreciation alcbr To Equipment 2325 232 Cao 80600 mu. 25000 Prer 32400 Equi 57675

Sr. No. In the books of xy2 Company for the year ending 31/1272020. 57675 Equiment 60000 hen. Der 2325 Poepcüd Insurance > 32400 25 020 muertory 80600 & cash 195675 Potal Assets Do give your feedback ) Hoppy devenint 90