Good Job Ltd. had the following list of balance sheet items: equity $240,000, non-current assets $500,000, accounts receivable $230,000, bank overdraft $300,000. Accounts payable, the only item missing from the list, must be: Group of answer choices 1.$670,000 2.$190,000 3.$210,000 4.$790,000
Question
Good Job Ltd. had the following list of balance sheet items: equity 500,000, accounts receivable 300,000. Accounts payable, the only item missing from the list, must be: Group of answer choices
1.$670,000
2.$190,000
3.$210,000
4.$790,000
Solution
To find the missing item, accounts payable, we need to calculate the total assets and total liabilities of Good Job Ltd.
Given: Equity = 500,000 Accounts receivable = 300,000
Step 1: Calculate the total assets. Total assets = Non-current assets + Accounts receivable + Bank overdraft Total assets = 230,000 + 1,030,000
Step 2: Calculate the total liabilities. Total liabilities = Total assets - Equity Total liabilities = 240,000 Total liabilities = $790,000
Therefore, the missing item, accounts payable, must be $790,000.
The correct answer is: 4. $790,000
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