Total Assets, Liabilities, and Shareholders' Equity Are $22,000, $5,000, and $17,000

question 97

Essay

Total assets, liabilities, and shareholders' equity are $22,000, $5,000, and $17,000 before land costing $10,000 is purchased in exchange for a $1,000 note payable and $9,000 cash. During the year, the company earned $50,000 of revenues of which only $45,000 was collected. Expenses totaling $44,000 were incurred, but $2,000 of this had not been paid by the end of the year. Show the amounts that would be reported on the accounting equation as a result of these transactions.

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Definitions:

Deskilling Of Work

The reduction in the complexity of work tasks, typically due to automation or the simplification of jobs, resulting in a decreased demand for skilled labor.

Labor History

The study of the development, organization, and movements of working-class groups and labor unions, often in the context of economic, social, and political changes.

Corporate Management

The process of directing, controlling, and administering a company or organization.

Human Relations School

An approach in organizational management that emphasizes social relations at work and the importance of worker satisfaction.