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29 February, 03:26

Assume that, after analyzing its business transaction, a firm has the following ending balances: accounts payable $3,400, accounts receivable $2,000, cash $1,000, capital $3,600, equipment $3,000, prepaid rent $600, and supplies $400. What is the total amount of assets that will be reported on the firm's balance sheet?

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  1. 29 February, 05:49
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    Total Assets = $7,000

    Explanation:

    Total assets are sum of fixed and current assets

    Fixed assets = Assets held for a period more than a year.

    Here Equipment is fixed asset with a value of $3,000

    Current Assets = Accounts Receivable, Cash balance, Prepaid rent, Supplies

    = $2,000 + $1,000 + $600 + $400

    =$4,000

    Total assets = $3,000 + $4,000 = $7,000
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