s22 Learning Objective 4 Analyze the impact of business tran

s2.2 (Learning Objective 4: Analyze the impact of business transaction on account) Cathey\'s Catering began with cash of $ 15,000. Cathey then bough supplies for $4,400 on account Separately.aCathey paid $ 7,500 for equipment. Answer these question a. How much in total assets dose Cathey have

Solution

Ans. Particulars Asstes = Liabilities + Capital Cash Supplies Equipment = Payables + Equity Started business with cash          15,000 = +            15,000 Total          15,000 = +            15,000 Purchase supplies on account            4,400 =            4,400 + Total          15,000            4,400 =            4,400 +            15,000 Purchase equipment on cash          (7,500)              7,500 = + Total $        7,500 $        4,400 $         7,500 = $        4,400 + $        15,000 Hence, total asset of Cathley is $ 19,400 i.e.(7,500+4,400+7,500)