Computation of Assets, Liabilities, and Equity After a Series of Transactions

question 20

Essay

Computation of assets, liabilities, and equity after a series of transactions
On April 30, 2009, the balance sheet of China Collectibles showed total assets of $700,000, total liabilities of $400,000, and equity of $300,000. The following transactions occurred in May of 2009:
(1) Share capital was issued in exchange for $165,000 cash.
(2) The business purchased equipment for $360,000, paying $160,000 cash and issuing a note payable for $200,000.
(3) The business paid off $70,000 of its accounts payable.
(4) The business collected $54,000 of its accounts receivable.
Compute the following as of May 31, 2009:
(A.) Total assets $___________
(B.) Total liabilities $___________
(C.) Equity $___________

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Definitions:

Co-Branding

A marketing strategy where two or more brands collaborate to create a product or marketing campaign that leverages the equity of each brand.

Consumer Value

The perception of benefits received by a customer from a product or service compared to the costs incurred in obtaining it.

Brand Loyalty

The tendency of consumers to continuously purchase one brand's products over competing brands due to satisfaction, trust, or emotional connection.

Global Branding

The process of creating, developing, and maintaining a unique brand identity and image for a product or company across multiple countries.