Effects of a Series of Transactions on Balance Sheet Items

question 100

Essay

Effects of a series of transactions on balance sheet items
Fieldstone, Inc. had the following transactions during the month of March, the first month of operations for the business:
* The corporation issued 12,000 shares of capital stock to Sandy Fieldstone in exchange for $120,000 cash.
* Purchased $73,000 of equipment; made a $18,000 down payment and signed a note payable for the balance.
* Made payment of $9,000 on the amount owed for equipment.
(A.) Compute the balance in the Cash account at the end of March.
(B.) What are the total assets of Fieldstone, Inc. at the end of March?
(C.) Compute the balance in the Notes Payable account at the end of March.
(D.) What is the total amount of owners' equity at the end of March?

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Definitions:

Restrictive Covenant

A clause in a contract that restricts or limits one party from engaging in certain activities, often to protect business interests.

Breach of Contract

A breach of contract occurs when one party fails to fulfill their obligations under the contract, leading to potential legal consequences or the right for the other party to seek damages.

Reasonable

A standard of fairness, practicality, and moderation, often used to judge actions or decisions in legal contexts.

Illegal Term

A provision in a contract or agreement that is not enforceable by law because it violates legal statutes or principles.