Question

EQ-j9 Company began operations in 2021 and entered into the following
transactions during the year:

February 15:     Sold common stock to owners for $359,000 cash.

May 22:          Purchased inventory costing $30,000 on account.

June 1:          Received $53,000 cash from a customer for services
                 to be performed over the next ten months.

August 1:        Purchased a 4-year insurance policy for $84,000 cash.

August 19:       Sold ¾ of the inventory purchased on May 22 for $106,000.
                 The customer paid ½ of the bill on August 19 and agreed
                 to pay the other ½ at a future point in time.

September 16:    Paid $17,000 to the supplier who the inventory was
                 purchased from on May 22.

December 31:     Received a $32,000 bill from the utility company. EQ-j9
                 Company will pay the bill next month.

December 31:     Recorded all necessary adjusting entries.

Calculate the total assets reported in EQ-j9 Company's December 31 2021
balance sheet.

Answer 1

calculate total assets =

Transaction	Effect on assets
Feb 15	359000
May 22	30000
June 1	53000
Aug 1	No effect
Aug 19	106000 -30000*3/4 = -22500
Sep 16	-17000
Dec 31	-84000/48*5 = -8750
Total assets	499750