Computation of Assets, Liabilities, and Owners' Equity After a Series

question 11

Essay

Computation of assets, liabilities, and owners' equity after a series of transactions. The December 31, 2009 balance sheet of Charles Realty reported total assets of $900,000, total liabilities of $350,000, and owners' equity of $550,000. The following transactions occurred in January of 2010:
(1) The business purchased land for $250,000, paying $100,000 cash and issuing a note payable for the balance.
(2) The business collected accounts receivable totaling $45,000.
(3) The business sold land costing $50,000 for $60,000 cash.
(4) The business paid $50,000 of the note payable.
Compute the following at January 31, 2010:
(A.) Total assets $__________
(B.) Total liabilities $__________
(C.) Owners' equity $__________

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Definitions:

Statement Future Intent

A declaration or indication of a party's plans or objectives for the future, not necessarily a binding commitment.

Specific Offeree

An individual or entity to whom an offer is directly and explicitly made in a contractual agreement.

UETA

The Uniform Electronic Transactions Act, which provides legal recognition to electronic signatures and records as equivalent to written documents and signatures in commercial transactions.

E-commerce

The buying and selling of goods and services over the internet.