Computation of Assets,liabilities,and Owners' Equity After a Series of Transactions

question 98

Essay

Computation of assets,liabilities,and owners' equity after a series of transactions
On April 30,2018,the balance sheet of China Collectibles showed total assets of $700,000,total liabilities of $400,000,and owners' equity of $300,000.The following transactions occurred in May of 2018:
(1)Capital stock 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 $70,000 of its accounts payable.
(4)The business collected $54,000 of its accounts receivable.
Compute the following as of May 31,2018:
(A. )Total assets
(B. )Total liabilities
(C. )Owners' equity

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Definitions:

Posterior Probability

The probability of a hypothesis or event occurring given the evidence or data observed.

Prior Probability

The probability of an event before new evidence is considered, used in Bayesian statistics as a part of updating the probability based on new information.

Posterior Probability

is the probability of the hypotheses given the observed data, calculated using Bayes' theorem.

Prior Probability

The likelihood of an event occurring before new evidence is taken into account.