Accounting Gurus, help me with this simple problem.?
Question:
ASSETS ?
LIABILITIES ?
STOCK HOLDERS EQUITY?
THANKYOU!!
Answer:
Opening balance
Asset = $150,000
Liabilities = $ 60,000
Equity = $150,00 - $60,000 = $90,000
a) paid on a note payable $10,000 (no interest was paid)
Credit cash [asset] $10,000
Debit note payable [liability] $10,000
--> less asset $10,000
--> less liability $10,000
b) collected an accounts receivable, $9,000;
Credit accounts receivable [asset] $9,000
Debit cash [asset] $9,000
--> less asset $9,000
---> add asset $9,000
c) paid an accounts payable $5,000
Credit cash [asset] $5,000
Debit accounts payable [liabilities] $5,000
--> less asset $5,000
--> less liabilities $5,000
d) purchased a truck, $5,000 cash, and a $20,000 note payable.
Credit cash [asset] $5,000
Debit truck [asset] $5,000
Debit cash [asset] $20,000
Credit note payable [liability] $20,000
--> less asset $5,000
--> add asset $5,000
--> add asset $20,000
--> add liability $20,000
Total change
Asset = $150,000 + a. (-$10,000) + b. (-$9,000 + $9,000) + c. (-$5,000) + d. (-$5,000 + $25,000) = $155,000
Liabilities = $60,000 + a. (-$10,000) + b. (+$0) + c. (-$5,000) + d. (+$20,000) = $65,000
Equity = $90,000
---> Asset ($155,000) = Liabilities ($65,000) + Equity ($90,000)
Thanks, assumed wrongly initially purchase of note payable = bought a note payable from someone else...
Assets: 155,000
Liabilities: 65,000
SE: 90,000
Note payable is a liability. Comerade answer.
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