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Total Assets, Liabilities, and Shareholders' Equity Are $14,000, $7,000, and $7,000

question 98

Essay

Total assets, liabilities, and shareholders' equity are $14,000, $7,000, and $7,000 before a new copy machine is purchased in exchange for a $1,000 note payable. What are the new amounts of assets, liabilities, and shareholders' equity after this event?


Definitions:

Kansas Farmers' Alliance

An organized agrarian economic movement among farmers in Kansas in the late 19th century that worked for their mutual benefit and protection.

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Regions of the globe that have been divided into standardized time areas, each typically one hour apart, to facilitate uniform time-keeping.

Newlands Reclamation Act

A 1902 U.S. law that funded irrigation projects for the arid lands of 20 states in the American West, promoting agriculture and settlement.

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