Answer to Question #208475 in Economics for arooj

Question

a) On July 02, Simmons Merchandise organized Life Care Insurance agency by opening a bank account in the company name with a deposit of $3,80,000 cash and also brought land worth $ 90,000 in the business. b) On July 16, the business purchased an office building total price of $208,000, of which $102,000 was applicable to the land and the remaining to the building. A down payment in cash was made Rs $84,000 and a note payable was issues for the balance of the purchase price. c) On July 25, office equipment was purchased from Ross & Co on credit basis at a price of $67,800. The same is to be paid on July 31. d) On July 28, a small portion of equipment that was purchased is found defective and returned to Ross & Co. The cost of defective material was $13,500. e) On July 31, the remaining liability to Ross & Co was paid in full

Answer 1

$$380000-84000-67800+13500=241700$$