Question

Benson Manufacturing Company was started on January 1, 2018, when it acquired $89,000 cash by issuing common stock. Benson immediately purchased office furniture and manufacturing equipment costing $7,700 and $26,800, respectively. The office furniture had an eight-year useful life and a zero salvage value. The manufacturing equipment had a $3,400 salvage value and an expected useful life of three years. The company paid $11,400 for salaries of administrative personnel and $15,600 for wages to production personnel. Finally, the company paid $13,350 for raw materials that were used to make inventory. All inventory was started and completed during the year. Benson completed production on 4,900 units of product and sold 3,970 units at a price of $14 each in 2018. (Assume that all transactions are cash transactions and that product costs are computed in accordance with GAAP.)

Determine the amount of total assets that would appear on the December 31, 2018, balance sheet.

Answer 1