Effects of a Series of Transactions on Balance Sheet Items

question 144

Essay

Effects of a series of transactions on balance sheet items
Fieldstone,Inc.had the following transactions during the month of March,the first month of operations for the business:
* The corporation issued 12,000 shares of capital stock to Sandy Fieldstone in exchange for $120,000 cash.
* Purchased $73,000 of equipment;made an $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,Inc.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 owners' equity at the end of March?

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Definitions:

Component Disposal

The act of selling or otherwise disposing of a distinct part of a company's assets, often as a part of operational restructuring.

Termination Pay

Compensation given to an employee when their employment ends as per the terms of their work contract, often depending on the duration of employment.

Asset Write-downs

Reductions in the book value of assets when their fair market value falls below the carrying value on the balance sheet.