Provide correct solution and accounting Gordon Company was recently formed witha $5,000 investment in the company byshareholders. The company then borrowed$2,000 from a bank, purchased $1,000 ofsupplies on account, and also purchased$5,000 of equipment by paying $2,000 incash and signing a note for the balance.Based on these transactions, the company'stotal assets are:A. $7,000B. $9,000C. $11,000D. $12,000

Step 1: Define AssetsAssets in finance are goods, property, investments, and other economic…

Answered: Gordon Company was recently formed with…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

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Problem 14M

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Gordon Company was recently formed with a $7,000 investment in the company by shareholders. The company then borrowed $4,000 from a bank, purchased $3,000 of supplies on account, and also purchased $7,000 of equipment by paying $4,000 in cash and signing a note for the balance. Based on these transactions, the company's total assets are___. A. $7,000 B. $9,000 C. $11,000 D. $17,000
A company was recently formed with $50,000 cash contributed to the company by stockholders for commonstock. The company then borrowed $20,000 from a bankand bought $10,000 of supplies on account. The companyalso purchased $50,000 of equipment by paying $20,000in cash and issuing a note for the remainder. What is theamount of total assets to be reported on the balance sheet?a. $110,000b. $100,000c. $90,000d. None of the above
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