[Tuan]

Or:
1/ Purchase new equipment –> Make no effect. => OK

2/ Make sale on credit —> Total assets encrease 7,500 (in Cash: 3,750 and AR: 3.750) => add in net assets: 13,200 + 7,500 = 20,700;

3/ Receive bills –> Liability increase, so:
20,700 – 2,250 = 18,450

[Tuan]

Net assets is defined as total assets minus total liabilities = Equity
As at 01.01.X1: 13,200
NI = Revenue – Cost : 7,500 – 2,250 = 5,250 => retain earning has encreased USD 5,250
=> As at the end of Feb net assets is 13,200 + 5250 = 18,450.
What do U think? Please show me if I was wrong.

[Tuan]

No.2
2/ Make sale on credit -> Decrease 7,500 in Asset and Capital because Nancy hasn’t received money from buyer, so :
13,200 – 7,500 =(13,200 -7,500) + 0
=> Nancy has not received money from client so Receivable has encrease. So if U minus 7,500 I think it’s not correct

[Author]

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