Question

For the year 2010 the value of a company's equity account was $10,829, current liabilities were...

For the year 2010 the value of a company's equity account was $10,829, current liabilities were $683, current assets were $19,642, and long-term debt was $30,865. Calculate the value of the fixed assets account for this company for the year 2010. (Do NOT use "$" in your answer.)

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Answer #1

Calculation of the value of the fixed assets

We know, Total assets = Owner' fund + Total liabilities

Total assets = Fixed Assets + Current Assets

Total liabilities = Long term liabilites + Current liabilties

So, Fixed Assets = (Equity Account + Long term Debt + Current Liabilties) - Current Assets

= ($10,829 + $30,865 + $683) - $19,642

= $42,377 - $19,642

= $22,735 (Answer)

So, the value of the fixed asset account of the company for the year 2010 is 22,735.

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