Presented Below Are Items for Blue Lagoon Company at December

question 55

Essay

Presented below are items for Blue Lagoon Company at December 31, 2020. $\begin{array}{lr}\text { Accounts payable } & \$ 37,000 \\\text { Accounts receivable } & 39,000 \\\text { Cash } & 17,000 \\\text { Equipment } & 78,000 \\\text { Owner's capital } & 47,000 \\\text { Notes payable } & 50,000\end{array}$ Compute each of the following:
1. Total assets.
2. Total liabilities.

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Definitions:

Credit Terms

Conditions under which credit is extended by a lender to a borrower, including the repayment period and interest rate.

Direct Quotation

A currency quotation method where the local currency is fixed, and the foreign currency varies.

Bid-ask Spread

The difference between the highest price a buyer is willing to pay for an asset (bid) and the lowest price a seller is willing to accept (ask).

Bid Rate

The price at which a buyer is willing to purchase a security, currency, or commodity, often used in financial markets to specify the maximum price a buyer is comfortable with.