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McmanusCo began business this year and entered into the following transactions during the year. McmanusCo issued...

McmanusCo began business this year and entered into the following transactions during the year. McmanusCo issued common stock in exchange for cash of $80,000 from stockholders, borrowed $40,000 from a bank, bought $12,000 of inventory on account, and purchased $32,000 of equipment by paying $12,000 in cash and issuing a note for the remainder. What is the amount of total assets to be reported on the balance sheet at the end of the year?

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Answer #1

Comm stock issued for cash = $80,000

Bank borrowings = $40,000

Inventory bought on account = $12,000

Equipment purchased = $32,000

Cash paid for equipment = $12,000

Ending cash balance = Comm stock issued for cash + Bank borrowings - Cash paid for equipment

= 80,000+40,000-12,000

= $108,000

Total assets at the end of the year = Cash + Inventory + Equipment

= 108,000+12,000+32,000

= $152,000

Kindly comment if you need further assistance. Thanks‼!

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