Question

answer the following questions. hint: use the accounting equation.
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on january 1, lumia company’s liabilities are $67,000 and its equity is $47,000. on january 3, lumia purchases and installs solar panel assets costing $17,000. for the panels, lumia pays $7,500 cash and promises to pay the remaining $9,500 in six months. what is the total of lumia’s assets after the solar panel purchase?

date	assets	=	liabilities	+	equity
change	(9,500)	=	9,500	+
january 3		=	$ 9,500	+

Explanation:

Step1: Calculate initial total assets

Using the accounting equation $Assets = Liabilities + Equity$, substitute the given values:
$Assets_{Jan1} = \$67,000 + \$47,000 = \$114,000$

Step2: Analyze asset change from purchase

The company acquires $\$17,000$ in solar panel assets, and pays $\$7,500$ cash. Net asset increase:
$\Delta Assets = \$17,000 - \$7,500 = \$9,500$

Step3: Calculate final total assets

Add the net asset change to initial assets:
$Assets_{Jan3} = \$114,000 + \$9,500 = \$123,500$

Answer:

$\$123,500$