Jones Enterprises was started when it acquired $4,800 cash from creditors and $7,200 from owners. The company immediately purchased land that cost $10,000. After all events have been recorded, Jones’s stockholders’ equity represents what percentage of total assets? Assume the debt is due. Given that Jones has $7,200 in stockholders’ equity, can the company repay the creditors at this point?

Jones Enterprises was started when it acquired $4,800 cash from creditors and $7,200 from owners. The company immediately purchased land that cost $10,000. After all events have been recorded, Jones’s stockholders’ equity represents what percentage of total assets? Assume the debt is due. Given that Jones has $7,200 in stockholders’ equity, can the company repay the creditors at this point?

Name: Jones Enterprises was started when it acquired $4,800 cash from credit
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Jones Enterprises was started when it acquired $4,800 cash from creditors and $7,200 from owners. The company immediately purchased land that cost $10,000. After all events have been recorded, Jones’s stockholders’ equity represents what percentage

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter1: Asset, Liability, Owner’s Equity, Revenue, And Expense Accounts

Section: Chapter Questions

Problem 2E: Determine the following amounts: a. The amount of the liabilities of a business that has 60,800 in...

See similar textbooks

Similar questions

Austin Land Company sold land for $60,550 in cash. The land was originally purchased for $35,250. At the time of the sale, $13,730 was still owed to Regions Bank. After the sale, Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation. Enter all dollar amounts as positive numbers. Total assets Total liabilities Stockholders' equity
Austin Land Company sold land for $59,930 in cash. The land was originally purchased for $34,230. At the time of the sale, $12,300 was still owed to Regions Bank. After the sale, Austin Land Company paid off the loan. Explain the effect of the sale and the payoff of the loan on the accounting equation. Enter all dollar amounts as positive numbers. Line Item Description Effect Amount Total assets Total liabilities Stockholders' equity
Park & Company was recently formed with a $6,000 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,000 from a local bank, purchased $1,100 of supplies on account, and also purchased $6,000 of equipment by paying $2,100 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are
Clint M. Invests $30,000 into Merle Company. The Effect to Assets would be: Clint M. Invests $30,000 into Merle Company. The effect to Liabilities would be: Clint M. invests $30,000 into Merle Company. The effect to Equity would be: Merle Company purchased a piece of equipment for $5,000 on account. The effect to Assets would be: Merle Company purchases a piece of equipment for $5,000 on account. The effect to Liabilities would be: Merle Company Purchases a piece of equipment for $5,000 on account. The effect to Equity would be: Merle Company pays $1,000 for this month’s rent in cash. The effect to Assets would be:
Clint M. Invests $30,000 into Merle Company. The Effect to Assets would be: Clint M. Invests $30,000 into Merle Company. The effect to Liabilities would be: Clint M. invests $30,000 into Merle Company. The effect to Equity would be: Merle Company purchased a piece of equipment for $5,000 on account. The effect to Assets would be: Merle Company purchases a piece of equipment for $5,000 on account. The effect to Liabilities would be: Merle Company Purchases a piece of equipment for $5,000 on account. The effect to Equity would be: Merle Company pays $1,000 for this month’s rent in cash. The effect to Assets would be: Merle Company pays $1,000 for this months rent in cash. The effect to Liabilities would be: Merle Company pays $1,000 for this month’s rent in cash. The effect Equity would be: Merle Company earns $9,000 from services preformed. The effect to Assets would be: Merle Company earns $9,000 from services preformed. The effect liabilities would be: Merle…
The owner of FN Trading received the amount loaned personally from a bank amounting to P4,500,000 and invested P800,000 of it into the business. How much is the increase in the total liabilities of the business?
Determine the dollar effect on the accounting equation (increase or decrease assets, liabilities, or stockholders’ equity) from the following separate transactions. a. Dillon contributes $4,000 of cash to his corporation in exchange for common stock. b. Cowboy Corporation purchases equipment with a 10-year note payable for $1,600. c. Queen Bee pays off $1,300 of accounts payable.
Park & Company was recently formed with a $6,400 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,400 from a local bank, purchased $1,140 of supplies on account, and also purchased $6,400 of equipment by paying $2,140 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are: Multiple Choice $9,800. $15,200. $12,800. $11,940.
A vacant lot acquired for $451,000, on which there is a balance owed of $266,090, is sold for $428,450 in cash. The seller pays the $266,090 owed. What is the effect of these transactions on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity?
Can you recheck the transaction on Feb. 12? It was said that the owner received P50,000 from customers, why did you deduct the P50,000 in accounts receivable? The cash came from the customers and not from the Nestle Corporation, does it? Should that P50,000 be added on the Capital? A revenue earned?
Snyder Company's transactions for the year ended December 31, 2020 included the following: • Purchased real estate for $1,250,000 cash which was borrowed from a bank. • Sold available-for-sale securities for $1,000,000. • Paid dividends of $1,200,000. • Issued 500 shares of common stock for $500,000. • Purchased machinery and equipment for $250,000 cash. • Paid $900,000 toward a bank loan. • Reduced accounts receivable by $200,000. • Increased accounts payable $400,000. Snyder's net cash used in financing activities for 2020 was a. $900,000 O b. $850,000 c. $450,000 O d. $350,000
The Owner's Capital has a beginning balance of P626,000. The owner gave P130,000 additional contribution during the year. Based on the Statement of Comprehensive Income. net income for the year was P355,000. How much money did the owner withdrew from the business? Accounts Payable Accounts Receivable Accrued Expenses Accumulated Depreciation Cash Inventory Investments Your answer Mortgage Payable 57,000 65,000 Notes Payable 37,000 Notes Receivable Your answer 110,000 Owner, Capital 91,000 Prepaid Expenses 89,000 Property, Plant and Equipment 143,000 Unearned Revenue 400,000 130,000 283,000 ? 64,000 850,000 18,000 An entity began October with office supplies of P16,500. During the month, the entity purchased supplies of P27,100. On October 30, supplies on hand totaled P21,200. How much should be recorded as supplies expense for the month?