Given the following account balances for Cowboy Law Firm at the end of December:- Cash: \$12,000- Accounts Receivable: \$5,000- Supplies: \$2,000- Accounts Payable: \$3,000- Common Stock: \$10,000- Retained Earnings: \$6,000What is the total amount of assets reported on the balance sheet at December 31?

• A. \$15,000
• B. \$21,000
• C. \$17,000
• D. \$19,000

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the components of the balance sheet. The balance sheet is divided into three main sections: assets, liabilities, and equity. Assets represent resources owned by the company, liabilities represent obligations, and equity represents the owners' claims on the company.
2. Step 2: Identify the accounts that are classified as assets. In this problem, the accounts classified as assets are Cash ( \$12,000 ), Accounts Receivable ( \$5,000 ), and Supplies ( \$2,000 ).
3. Step 3: Add the values of all asset accounts to calculate the total assets. Use the formula: $\mathrm{Total} \mathrm{Assets}=\mathrm{Cash}+\mathrm{Accounts} \mathrm{Receivable}+\mathrm{Supplies}$
4. Step 4: Substitute the given values into the formula: $\mathrm{Total} \mathrm{Assets}=\mathrm{12,000}+\mathrm{5,000}+\mathrm{2,000}$
5. Step 5: Perform the addition to find the total assets. This will give you the total amount of assets reported on the balance sheet at December 31.