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 $230,000 cash. March 1: Purchased equipment for $85,000 cash. The equipment was assigned a life of six years and a residual value of $4.000 April 30: Lent a customer 560,000 on a 10-month, 11% note receivable May 22: Purchased inventory costing 561,000 on account. June 1: Received 573,000 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 $108,000 The customer paid X of the bill on August 19 and agreed to pay the other at a future point in time. September 16: Paid $23,000 to the supplier who the inventory was purchased from on May 22. December 31: Received a $19,000 bill fron the utility company. 89-1R Company will pay the bill next month. December 31: Recorded all necessary adjusting entries. Calculate the total assets reported in 19-1R Company's December 31 2025 balance sheet.

Answer 1

	Total Assets
Date	Increase/decrease in total assets through	Amount iin $
Feb. 15	Increase Cash	$230,000
Mar. 1	Increase equipment	$85,000
	Decrease cash	($85,000)
Apr. 30	Decrease cash	($60,000)
	Increase Notes Receivable	$60,000
May. 22	Increase inventory	$61,000
Jun. 1	Increase Cash	$73,000
Aug. 1	Decrease cash	($84,000)
	Increase Prepaid insurance	$84,000
Aug. 19	Decrease inventory	($61,000)
	Increase Cash	$108,000
Sep. 16	Decrease cash	($23,000)
Dec. 31	No impact on total assets
Dec. 31	Decrease Equipment due to depreciation ($85,000-$4,000/6 years)	($13,500)
Dec. 31	Interest Receivable ($60,000*11/100*10/12)	$5,500
Dec. 31	Decrease in Prepaid Insurance ($84,000/48*5)	($8,750)
Dec. 31	Total Assets	$371,250

Therefore, total assets are $371,250.