ABC Company began business in June when stockholders invested $80,000 in the business, which in turn issued its common stock to them. ABC Company then purchased a building for $40,000 cash and inventory for $20,000 cash, performed services for clients for $10,000 cash, purchased supplies for $5,000 cash, and paid utilities of $2,000 cash. What is the amount of total assets?
A) $80,000
B) $88,000
C) $108,000
D) $163,000

Question

Quizplus · Accepted Answer

Total assets are calculated as: Initial cash from stockholders ($80,000) + Building ($40,000) + Inventory ($20,000) + Cash from services ($10,000) - Supplies ($5,000) - Utilities ($2,000) = $88,000.

ABC Company Began Business in June When Stockholders Invested $80,000