Use Taccounts to record the transactions below which occur o

Use T-accounts to record the transactions below, which occur on March 12, 2018, close the T-accounts, and construct a balance sheet to answer the question.

1. Sell, deliver, and receive payment of $20,000 for service 2. Consume good or service and pay expense of $2,000 3. Sell product for $25,000 in cash with historical cost of $20,000

What is the final amount in Total Assets?

Please specify your answer in the same units as the balance sheet

Solution

Cash Mar 12, 2018 $20,000 $2,000 Mar 12, 2018 Income Statement Mar 12, 2018            25,000 Revenues Balance $43,000 Sales revenue 25000 Service Revenue Service Revenue 20000 $20,000 Mar 12, 2018 45000 Less: Expenses Cost of ggoods sold 20000 Sales Revenue Consumbable expense 2000 $25,000 Mar 12, 2018 22000 Net Income 23000 Consumable Expense Mar 12, 2018 $          2,000 Balance sheet Assets: Cost of goods sold Cash 43000 Mar 12, 2018 $        20,000 Total assets 43000 Liabilities and equity Inventory Accounts payable 20000 Mar 12, 2018 $        20,000 $        20,000 Mar 12, 2018 Retained earning 23000 Total liabilities and equity 43000 Accounts Payable $20,000 Mar 12, 2018 So Total assets should be $43,000 under this asumption If we assume the cost of goods sold is also paid in cash it might change Note: For want of information, it is assumed the Cost of sales To $23000 of $20000 is purchased on account and finished.