Refer to E1.14. What is the current ratio of Shenefield Company? Classify each of the following as assets, liabilities, or owners’ equity for Kiren Company:
A. Kiren Company’s owners have contributed $175,000 in land to the company.
B. Kiren Company owes $10,000 to the bank on a three-year note payable.
C. Kiren Company bought and has not yet sold $50,000 of inventory.
D. Kiren Company owns a piece of land costing $175,000 for a future building site.
E. Kiren Company owes the Internal Revenue Service $2,000 for taxes.
F. Kiren Company has office and other supplies costing $1,500.
G. Kiren Company owes the utility company $1,250 for services received last month

Data from E 1.14

Classify each of the following as assets or liabilities for Shenefield Company:
A. Shenefield Company owes its suppliers $50,000.

B. Shenefield Company’s customers owe it $40,000.
C. Shenefield Company has $100,000 in its checking account.
D. Shenefield Company owes the bank $20,000 on a five-year loan.
E. Shenefield Company owns a building costing $500,000.
F. Shenefield Company’s employees have worked all week but have not been paid the $5,000 owed to them.
G. Shenefield Company has developed a new process that is protected by a patent costing $16,000.