Jones Enterprises was started when it acquired $5,500 cash from creditors and $16,500 from owners. The company immediately purchased land that cost $18,000. Required a. Record the events under an accounting equation. b. After all events have been recorded, Jones's obligations to creditors represent what percent of total assets? c. After all events have been recorded, Jones's stockholders' equity represents what percentage of total assets? d. Assume the debt is due. Given that Jones has $16,500 in stockholders' equity, can the company repay the creditors at this point?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Jones Enterprises was started when it acquired $5,500 cash from creditors and $16,500 from owners. The company immediately
purchased land that cost $18,000.
Required
a. Record the events under an accounting equation.
b. After all events have been recorded, Jones's obligations to creditors represent what percent of total assets?
c. After all events have been recorded, Jones's stockholders' equity represents what percentage of total assets?
d. Assume the debt is due. Given that Jones has $16,500 in stockholders' equity, can the company repay the creditors at this point?
Transcribed Image Text:Jones Enterprises was started when it acquired $5,500 cash from creditors and $16,500 from owners. The company immediately purchased land that cost $18,000. Required a. Record the events under an accounting equation. b. After all events have been recorded, Jones's obligations to creditors represent what percent of total assets? c. After all events have been recorded, Jones's stockholders' equity represents what percentage of total assets? d. Assume the debt is due. Given that Jones has $16,500 in stockholders' equity, can the company repay the creditors at this point?
JONES ENTERPRISES
Accounting Equation
Stockholders'
Cash
Land
Creditors
Equity
$ 22,000 +
$
5,500 +$
16,500
18,000 =
+
+
Bal.
$ 22,000 +
$
18,000 =
$
5,500 +
$
16,500
II
+
Transcribed Image Text:JONES ENTERPRISES Accounting Equation Stockholders' Cash Land Creditors Equity $ 22,000 + $ 5,500 +$ 16,500 18,000 = + + Bal. $ 22,000 + $ 18,000 = $ 5,500 + $ 16,500 II +
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