Question

At the beginning of April, Warren Corporation's assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred: Additional shares of stock were sold for $20,000 cash. A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable. Short-term investments costing $9,000 were purchased using cash. $10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan. How much are Warren's total assets at the end of April?

Answer 1

Answer:

The Warren's total assets at the end of April is $345,000

Explanation:

The computation of the ending total assets value is shown below:

= Total assets - sale of stock + machine purchased - cash payment for purchase of building + purchase of short term investment - cash payment for purchase of short term investment - cash paid to the employee as a loan + notes issued

= $240,000 + $20,000 + $95,000 - $10,000 + $9,000 - $9,000 - $10,000 + $10,000

= $345,000