Can you solve this problem?Can you tell me how did you solved it?
Determine the assests of a business based on the following info: cash of $4,000, accounts receivable of $2,300, inventory of $8460,equiment worth $3500, and long-term debt of $12850?
2007-02-23 15:30:43 · 6 answers · asked by Brenda P 1 in Business & Finance ➔ Other - Business & Finance
1) Cash; $4,000 DR: CR $4,000 LTD (or 4,000 R/E)
2) A/R; $2,300 DR; CR $2,300 LTD (or 2,300 R/E)
3) Inventory; $8,460; CR $8,460 LTD (or 5,410 R/E)
4) Equipment; $3,500; CR 3,500 LTD (or 3,500 R/E)
Total Liabilities & Equity = $18,260, thererfore, if LTD = $12,850, then $5,410 (18,260 - 12,850) of the money in the business must have come from sale of the above assets, in combination of cash, A/R, Inventory, or Equipment. Inventory is an asset.
2007-02-23 15:55:40 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Inventory Asset Or Liability
2016-12-29 11:50:47 · answer #2 · answered by suzette 3 · 0⤊ 0⤋
Assets
4,000 cash
2,300 receivables
8,460 inventory
3,500 equipment
-------
18,260 assets
Debt
12850
Note: the inventory is an asset because it can be sold. If it is sold at less than its purchase price then the company has a loss on it , but it is still an assett.
A liability is something the business owes.
2007-02-23 15:43:33 · answer #3 · answered by mark 6 · 2⤊ 0⤋
This Site Might Help You.
RE:
Is inventory an asset or liability?
Can you solve this problem?Can you tell me how did you solved it?
Determine the assests of a business based on the following info: cash of $4,000, accounts receivable of $2,300, inventory of $8460,equiment worth $3500, and long-term debt of $12850?
2015-08-16 22:45:20 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Inventory is always an asset, whether it is paid for or not. If there is any money owed due to buying the inventory, that is considered separately under debts.
2007-02-23 15:48:17 · answer #5 · answered by Brian G 6 · 2⤊ 0⤋
For the best answers, search on this site https://shorturl.im/h3DvB
1. paid cash to discharge account payable Assets decrease; AP decrease 2. purchased inventory on account Assets increase; AP increase 3. purchased equipment on account Assets increase; AP increase 4. purchased inventory for cash Assets increase; assets decrease - net effect is NIL
2016-03-27 05:36:29 · answer #6 · answered by Anonymous · 0⤊ 0⤋
I cant wait to find the answer. I have 40K of inventory in my house from my small business, and we actually show a profit (we havent added the inventory in yet)
2007-02-23 15:33:47 · answer #7 · answered by batwanda 4 · 0⤊ 0⤋
tricky situation. research with bing and yahoo. that will might help!
2016-03-13 16:39:35 · answer #8 · answered by ? 3 · 0⤊ 0⤋