The Lagrange Corporation had the following account balances at year-end: Cash \$12,000, Accounts Receivable \$8,000, Inventory \$15,000, Equipment \$25,000, Accounts Payable \$10,000, and Common Stock \$50,000. What is the total amount of assets that should be reported on the balance sheet?

• A. \$55,000
• B. \$50,000
• C. \$70,000
• D. \$60,000

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the concept of assets. Assets are resources owned by a company that have economic value and are expected to provide future benefits. Examples include cash, accounts receivable, inventory, and equipment.
2. Step 2: Identify the accounts that represent assets from the given data. In this case, the asset accounts are: Cash (\$12,000), Accounts Receivable (\$8,000), Inventory (\$15,000), and Equipment (\$25,000).
3. Step 3: Add the values of all the asset accounts together to calculate the total assets. Use the formula: Total Assets = Cash + Accounts Receivable + Inventory + Equipment.
4. Step 4: Write the equation in MathML format: $\mathrm{Total} \mathrm{Assets}=\mathrm{Cash}+\mathrm{Accounts} \mathrm{Receivable}+\mathrm{Inventory}+\mathrm{Equipment}$
5. Step 5: Substitute the values into the equation: Total Assets = \$12,000 + \$8,000 + \$15,000 + \$25,000. This will give you the total amount of assets to be reported on the balance sheet.