b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.
b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Maben Company was started on January 1, Year 1, and experienced the following events during its first year
of operation:
1. Acquired $32,000 cash from the issue of common stock.
2. Borrowed $38,000 cash from National Bank.
3. Earned cash revenues of $50,000 for performing services.
4. Paid cash expenses of $46,000.
5. Paid a $1,200 cash dividend to the stockholders.
6. Acquired an additional $22,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $55,000 cash to purchase land.
9. Determined that the market value of the land is $77,000.
b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.
Answer is complete but not entirely correct.
Total assets
$ 28,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1c0c823a-e3d2-414f-aa4d-018a49ac722f%2F0cf020b6-2b45-4230-9274-2403fc9c44ef%2Fi33zg8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
[The following information applies to the questions displayed below.]
Maben Company was started on January 1, Year 1, and experienced the following events during its first year
of operation:
1. Acquired $32,000 cash from the issue of common stock.
2. Borrowed $38,000 cash from National Bank.
3. Earned cash revenues of $50,000 for performing services.
4. Paid cash expenses of $46,000.
5. Paid a $1,200 cash dividend to the stockholders.
6. Acquired an additional $22,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $55,000 cash to purchase land.
9. Determined that the market value of the land is $77,000.
b. Determine the amount of total assets that Maben would report on the December 31, Year 1, balance sheet.
Answer is complete but not entirely correct.
Total assets
$ 28,000
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