Question

Shane​'s Catering began with cash of $ 10 comma 000. Shane then bought supplies for $ 2 comma 700 on account.​ Separately, Shane paid $ 6 comma 500 for equipment. Answer these questions. a. How much in total assets does Shane ​have? b. How much in liabilities does Shane ​owe? a. How much in total assets does Shane ​have? Shane has $ 12300 in total assets.

Answer 1

Answer:

a. $12,700

b. $2,700

Explanation:

The $10,000 she began with is an asset to the company and is also the owners equity.

Equipment purchased reduces cash but gives rise to another asset (fixed assets) hence the assets value does not change. Supplies is purchased on account, resulting in the creation of an asset and a liability.

Hence total asset owned by Shane Catering

= $10,000 + $2,700

= $12,700

Total liabilities = $2,700