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:

External Obliques

Muscles located on the sides of the abdomen, aiding in rotation and lateral bending of the torso.

Pectoralis Minor

A small chest muscle that facilitates movement of the shoulder.

Scalenes

A group of muscles located in the neck, responsible for assisting with breathing and the lateral flexion and rotation of the neck.

Blood Concentration

The amount of a substance (such as glucose, electrolytes, or medication) present in a certain volume of blood.