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

question 119

Essay

Computation of assets, liabilities, and 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 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 one-fifth of the land (which had cost $50,000) land costing $50,000 for $60,000 cash.
(4) The business paid off $50,000 of the note payable.
Compute the following at January 31, 2010:
(A.) Total assets$__________
(B.) Total liabilities$__________
(C.) Equity$__________

Understand the criteria for evaluating ethical companies and the significance of corporate citizenship.

Understand the concept of expatriation and the characteristics of expatriate workers.

Grasp Hofstede's cultural dimensions and their application in international business.

Recognize the stages of cultural adaptation and the challenges of living in a foreign environment.

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Definitions:

Assumption

Something that is accepted as true or as certain to happen, without proof.

Forms of Communication

Various methods or modalities used to convey messages and information, including verbal, non-verbal, written, and digital.

Benefit

An advantage or profit gained from something.

Passive Activity

An activity in which the person involved does not actively participate or exert control, often used in reference to certain types of income for tax purposes.