Question

Required information [The following information applies to the questions displayed below.] Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation: 1. Acquired $30,000 cash from the issue of common stock. 2. Borrowed $40,000 cash from National Bank. 3. Earned cash revenues of $48,000 for performing services. 4. Paid cash expenses of $25,000. 5. Paid a $1,000 cash dividend to the stockholders. 6. Acquired an additional $20,000 cash from the issue of common stock. 7. Paid $10,000 cash to reduce the principal balance of the bank note. 8. Paid $53,000 cash to purchase land. 9. Determined that the market value of the land is $75,000. b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet. Total assets

Answer 1

b. Total assets. Assets t Event MIO Cash ($) Land (6) t - t N t t J 30000 40,000 48,000 C25,000) (1,000) €20,000 (10,000) ( 53,000) t is t it t s & 53000 o Tota) Assets 49000 + 53,000 Tota) Assets = $ 49000 + $ 53000 = $ 102,000