Effects of a Series of Transactions on Balance Sheet Items

question 84

Essay

Effects of a series of transactions on balance sheet items
Clark Plumbing had the following transactions during the month of June, the first month of operations for the business:
* The corporation issued 12,000 shares of share capital to Bill Clark in exchange for his investment of $72,000 cash.
* Purchased $36,000 of equipment; made an $8,000 down payment and signed a note payable for the balance.
* Made payment of $4,000 on the amount owed for equipment
(A.) Compute the balance in the Cash account at the end of June.
(B.) What are the total assets of Clark Plumbing at the end of June?
(C.) Compute the balance in the Notes Payable account at the end of June.
(D.) What is the total amount of equity at the end of June?

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Definitions:

Native Americans

The Indigenous peoples of the United States, including a vast number of tribes, cultures, and languages that existed in America before European colonization.

White Settlement

The establishment of communities in a new area by white people, often in regions previously or concurrently inhabited by Indigenous peoples or other ethnic groups.

Crop-Lien System

A form of credit extended to farmers, typically those who grew cotton, where future crops were used as collateral for loans to purchase supplies and land.

Debt

An obligation or liability to pay or render something to another party, which can be a result of borrowing funds or acquiring goods and services.