Question

At the beginning of April, Warren Corporation's assets totaled $240,000 and liabilities totaled $60,000. During April the following summarized transactions occurred:

Additional shares of stock were sold for $20,000 cash.
A building costing $95,000 was purchased using $10,000 cash and by signing an $85,000 long-term note payable.
Short-term investments costing $9,000 were purchased using cash.
$10,000 was paid to an employee as a loan; the employee signed a six-month note in exchange for the loan.

How much are Warren's total assets at the end of April?

$335,000.

$249,000.

$345,000.

$250,000.

Answer 1

Calculation of Warren's total assets at the end of April
Total assets at the beginning of April	$240,000
Add:Cash received on issue of stock	$20,000
Add: Building Purchased	$95,000
Less : Cash payment for building purchase	-$10,000
Add : Short term Investment purchased	$9,000
Less : Cash payment for purchase of short term investment	-$9,000
Less : Cash payment to an employee as a loan	-$10,000
Add: Note issued in exchange of loan to an employee	$10,000
Total assets at the end of April	$345,000
The answer is $345000