How would I solve this problem

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1. A business started the current period with liabilities of $71,000 and Equity of $37,000. During the period the following business transactions took place.
1. Purchased equipment for $43,000; paying $17,000 cash and issuing a note payable for the balance.
2. Received $2,700 of the amount owed by a customer for services provided on account.
3. Paid $5,700 of the amount owed for supplies purchased on account.
4. Provided services of $3,500 on account.
5. Paid $1,900 towards rent for the current period.
Determine the Assets of the business at the end of the period.
 
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Just do some basic t-accounting. This is really easy. Just think about whether each one effects the Assets, and whether it increases or decreases your assets. You start with $71,000 in your assets. I'll walk through the first one for you.

1. You're buying 43,000 worth of equipment which is an asset, so add 43,000 to assets. But you're also paying out some cash, so subtract 17,000. (you can ignore the rest of the purchase because you're buying it on credit.) so your assets after the first step is 97,000.

Remember:
Things that you buy on credit don't effect the assets, because A/P is a liability,
But services you provide on credit DO effect assets, because A/R is an asset.

You should be able to do the rest by yourself, GOOD LUCK! If you have specific questions, I'd still be willing to help, or else I'd happily check your work
Disregard me, and follow the instructions below, instead.
 
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Also, these should probably go in exam/studying, since they're homework problems. General accounting is more for real-life accounting questions.
 
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Eh, you are incorrect. The accounting equation, which is Assets = Liabilities + Equity must always be in balance; therefore, before applying step one, you have assets of $108,000 ($71,000 of liabilities + $31,000 of equity). In step one, the net change in assets is a positive one, $26,000, since you are adding $43,000 (equipment) and subtracting $17,000 (cash). So, after step one, you have assets of $134,000 (the beginning balance of $108,000 + the $26,000 net changes attributed to transaction 1).

Just do some basic t-accounting. This is really easy. Just think about whether each one effects the Assets, and whether it increases or decreases your assets. You start with $71,000 in your assets. I'll walk through the first one for you.

1. You're buying 43,000 worth of equipment which is an asset, so add 43,000 to assets. But you're also paying out some cash, so subtract 17,000. (you can ignore the rest of the purchase because you're buying it on credit.) so your assets after the first step is 97,000.

Remember:
Things that you buy on credit don't effect the assets, because A/P is a liability,
But services you provide on credit DO effect assets, because A/R is an asset.

You should be able to do the rest by yourself, GOOD LUCK! If you have specific questions, I'd still be willing to help, or else I'd happily check your work!
 
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from the question the solution should take into account the following.

1. it is obvious that the transactions are not for the first year of operations
2. the current year expenses are in addition to the balances brought forward from the previous year.

therefore to solve the problem, find the opening balances. To do this you would have to work your way back as LYAK has describle.
 
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Eh, you are incorrect. The accounting equation, which is Assets = Liabilities + Equity must always be in balance; therefore, before applying step one, you have assets of $108,000 ($71,000 of liabilities + $31,000 of equity). In step one, the net change in assets is a positive one, $26,000, since you are adding $43,000 (equipment) and subtracting $17,000 (cash). So, after step one, you have assets of $134,000 (the beginning balance of $108,000 + the $26,000 net changes attributed to transaction 1).
:eek: :( wow, you're right. I guess I'll be hitting the books again before fall... Thanks.
 

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