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15 December, 20:44

On January 1, Kirk Corporation had total assets of $864,000. During the month, the following activities occurred: Kirk Corporation acquired equipment costing $7,400, promising to pay cash for it in 60 days. Kirk Corporation purchased $3,640 of supplies for cash. Kirk Corporation sold land, which it had acquired 2 years ago. The land had cost $16,400 and it was sold for $16,400 cash. Kirk Corporation signed an agreement to rent additional storage space next month at a charge of $1,140 per month. What is the amount of total assets of Kirk Corporation at the end of the month

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  1. 15 December, 21:25
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    The amount of total assets of Kirk Corporation at the end of the month is $ 871,400

    Explanation:

    Total assets at January 1 = $864,000

    Equipment purchased = $ 7,400

    Supplies purchased = $ 3,640

    Cash paid for supplies = $ 3,640

    Cost of land sold = $16,400

    Cash received from Land sold = $16,400

    Therefore total amount of cash out = $ 16,400 + $3,640 = $ $20,040

    Total amount of cash in = $ 7,400 + $ 3,640 + $16,400 = $27,440

    Amount of total assets at the end of the month = $864,000 + $27,440 - $20,040 = $ 871,400
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