Homework SourseThe balances of select accounts of Donovan Inc as of Decembe
The balances of select accounts of Donovan, Inc. as of December 31, 2018 are given below.
Debit
Credit
Building
$120,000
Cash
7,000
Office Supplies
700
Furniture
6,000
Prepaid Insurance
650
Depreciationlong dash—Furniture
$4,000
Land
33,000
Depreciationlong dash—Building
4,000
Accounts Receivable
4,000
What amount of total long?term assets would be shown on the balance sheet at December 31, 2018?
A.$159,000
B.$151,000
C.$153,000
D.$120000
| Debit | Credit | |
| Building | $120,000 | |
| Cash | 7,000 | |
| Office Supplies | 700 | |
| Furniture | 6,000 | |
| Prepaid Insurance | 650 | |
| Accumulated Depreciationlong dash—Furniture | $4,000 | |
| Land | 33,000 | |
| Accumulated Depreciationlong dash—Building | 4,000 | |
| Accounts Receivable | 4,000 |
Solution
B. $151,000
Long-term Assets = Building + Furniture + Land - Accumulated Depreciation--Furniture - Accumulated Depreciation--Building
Long-term Assets = $120,000 + $6,000 + $33,000 - $4,000 - $4,000 = $151,000
