ABC Corporation had the following account balances at the beginning of the year: Cash: $10,000 Accounts Receivable: $5,000 Inventory: $20,000 Accounts Payable: $8,000 Long-term Debt: $50,000 Equity: $35,000 During the year, the company generated $50,000 in sales revenue, incurred $30,000 in expenses, and paid off $10,000 of long-term debt. Calculate the ending balance of equity.

ABC Corporation had the following account balances at the beginning of the year: Cash: $10,000 Accounts Receivable: $5,000 Inventory: $20,000 Accounts Payable: $8,000 Long-term Debt: $50,000 Equity: $35,000 During the year, the company generated $50,000 in sales revenue, incurred $30,000 in expenses, and paid off $10,000 of long-term debt. Calculate the ending balance of equity.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

ABC Corporation had the following account balances at the beginning of the year:

Cash: $10,000

Accounts Receivable: $5,000

Inventory: $20,000

Accounts Payable: $8,000

Long-term Debt: $50,000

Equity: $35,000

During the year, the company generated $50,000 in sales revenue, incurred $30,000 in expenses, and paid off $10,000 of long-term debt. Calculate the ending balance of equity.

Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.

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