The following transactions apply to Wilson Fitness Center for Year 1.1) Started the business by issuing $48,000 of common stock for cash.2) Provided services to clients and received $65,500 cash.3) Borrowed $10,500 from the bank.4) Paid $8,500 for rent of equipment.5) Purchased land for $15,000.5) Paid $46,600 of salary expense.6) Cash dividends of $4,000 were paid to the stockholders.Required: a) What are the total assets of the business at the end of Year 1?b) Prepare a statement of cash flows for Year 1.

What will be an ideal response?


a) Total assets = $48,000 + $65,500 + $10,500 ? $8,500 + $15,000 ? $15,000 ? $46,600 ? $4,000 = $64,900
b)

Business

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