Question: Laredo Company reported total assets of 7 million and total

Laredo Company reported total assets of $7 million and total liabilities of $4 million at the end of 20X0.
1. Construct the balance sheet equation for Laredo Company at the end of 20X0 and include the correct amount for owners’ equity.
2. Suppose that during January 20X1 Laredo borrowed $2 million from Wells Fargo Bank. How would this affect Laredo’s assets, liabilities, and owners’ equity?

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  • CreatedFebruary 20, 2015
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