Effects of a Series of Transactions on Balance Sheet Items

question 6

Essay

Effects of a series of transactions on balance sheet items
Fieldstone Limited had the following transactions during the month of March, the first month of operations for the business:
* The corporation issued 12,000 shares of share capital 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 Limited 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 equity at the end of March?

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Definitions:

Sentiment

Refers to the general feeling or opinion of individuals or the public about a particular topic, which can influence economic decisions and market trends.

Balance of Trade

The difference between the value of our imports and our exports.

Trade Problem

Issues or challenges that arise in the process of exchange of goods, services, or both between countries.

High Protective Tariffs

Elevated taxes imposed on imported goods to protect domestic industries from foreign competition.