The total consideration received from share issuances was $4,000,000. A flat sum payment of $800,000 was used to purchase a plot of land and a structure. On the land and building, a $200,000 mortgage was assumed. Throughout the year, instalments totaling $160,000 were made on the mortgage that was taken out on the land and structure. The instalments include interest in the amount of 20,000. Bank loans enabled the additional capital of £400,000 to be acquired. Throughout the year, none of the bank loans were paid back. A second mortgage on the land and building was necessary for 50% of the bank loans. As of the year's conclusion, no interest had accumulated. There were 120,000 in declared but unpaid dividends for the year. No other business dealings during the year had an impact on liabilities. As of December 31, 2021, retained earnings were $240,000. What amount will the assets total as of December 31, 2021?

The total consideration received from share issuances was $4,000,000. A flat sum payment of $800,000 was used to purchase a plot of land and a structure. On the land and building, a $200,000 mortgage was assumed. Throughout the year, instalments totaling $160,000 were made on the mortgage that was taken out on the land and structure. The instalments include interest in the amount of 20,000. Bank loans enabled the additional capital of £400,000 to be acquired. Throughout the year, none of the bank loans were paid back. A second mortgage on the land and building was necessary for 50% of the bank loans. As of the year's conclusion, no interest had accumulated. There were 120,000 in declared but unpaid dividends for the year. No other business dealings during the year had an impact on liabilities. As of December 31, 2021, retained earnings were $240,000. What amount will the assets total as of December 31, 2021?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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