Question

B9-1R Company began operations in 2025 and entered into the following transactions during the year: February 15: Sold common stock to owners for $239,000 cash. March 1: Purchased equipment for $85,000 cash. The eqyipment was assigned a life of six years and a residual value of $4,000. April 30: Lent a customer $60,000 on a 10-month, 12% note receivable. May 22: Purchased inventory costing $59,000 on account. June 1: Received $66,000 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 of the inventory purchased on May 22 for $114,000. The customer paid of the bill on August 19 and agreed to pay the other 4 at a future point in time. September 16: Paid $13,000 to the supplier who the inventory was purchased from on May 22. December 31: Received a $41,000 bill from the utility company. B9-12 Company will pay the bill next month December 31: Recorded all necessary adjusting entries. Calculate the total assets reported in 89-10 Company's December balance sheet

Answer 1

Date	Account Titles	Debit	Credit
15-Feb	Cash	$      239,000
	Common Stock		$      239,000
1-Mar	Equipment	$        85,000
	Cash		$        85,000
30-Apr	Notes Receivable	$        60,000
	Cash		$        60,000
22-May	Inventory	$        59,000
	Accounts Payable		$        59,000
1-Jun	Cash	$        66,000
	Unearned Service Revenue		$        66,000
1-Aug	Prepaid Insurance	$        84,000
	Cash		$        84,000
19-Aug	Cash	$        57,000
	Accounts Receivable	$        57,000
	Sales Revenue		$      114,000
	Cost of Goods Sold	$        44,250
	Inventory		$        44,250
16-Sep	Accounts Payable	$        13,000
	Cash		$        13,000
31-Dec	Utilities Expense	$        41,000
	Accounts Payable		$        41,000
31-Dec	Depreciation Expense	$        11,250
	Accumulated Depreciation		$        11,250
31-Dec	Interest Receivable	$          4,800
	Interest Revenue		$          4,800
31-Dec	Unearned Service Revenue	$        46,200
	Service Revenue		$        46,200
31-Dec	Insurance Expense	$          8,750
	Prepaid Insurance		$          8,750

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