You and a friend each put in $20,000 to capitalize the corporation (and you each get 10,000

Fantastic news! We've Found the answer you've been seeking!

Question:

You and a friend each put in $20,000 to capitalize the corporation (and you each get 10,000 shares). That's $40,000 total. o You buy a truck for $20,000. o You take out a loan for $5,000 in cash.

What does the balance sheet look like?

Explain each transaction as a separate event.

At the end, what are your total assets?

What are your total liabilities?

What is your shareholder equity?

Related Book For answer-question

Microeconomics

ISBN: 9781464146978

1st Edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

See More Books

Posted Date: Apr 27, 2023 03:22 AM

See More Questions

The EnCal Corporation is a small, West Coastbased power company specializing in power generation methods that use clean-burning fuels and renewable natural resources.However, due to a complex and...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
Case 2: Company DEF I have 20 staff, with 2 groups rotating the shift. Group 1: - working 6 days in week 1 and week 3. - Working 5 days in week 2 and week 4 Group 2: - working 6 days in week 2 and...
Assume that the business in Exercise 6-5 maintains a perpetual inventory system, costing by the first-in, first-out method. Determine the cost of merchandise sold for each sale and the inventory...
Alvarez Company makes three joint products, products A, B, and C. For each batch, the materials cost is $23,500, direct labor cost is $7,000, and manufacturing overhead is $14,500. From each batch,...
What general factors should be taken into account when recruiting salespeople?
Presented below is the balance sheet of Sargent Corporation for the current year, 2012. The following information is presented.1. The current assets section includes: cash $150,000, accounts...
Explain the variety of ways how Foreign Direct Investment can be integrated into the business, Outline Potential Challenges , Risk Mitigation and Benefits.
John is part of a religious group that believes you should have multiple wives. However, since John realizes that the United States criminalizes plural marriages, he officially marries only one woman...
s tart thinking about the current world of HRIS and how we've all had to adapt recently. just thinking and talking about current events and relating them back to HRIS and HR/IT/Management decisions....
Renue Spa had the following balances as of December 31, Year 1: Accounts receivable was $87,000, allowance for doubtful accounts was $2,900 and total retained earnings at the end of Year 1 was...
How does heat transfer in phase-change materials (PCMs) contribute to the design of efficient thermal energy storage systems, and what are the key considerations in terms of thermal conductivity,...
Marty, age 56, and Marcia, age 53, are starting to think about retirement. Marty plans to retire at age 65 and he expects to live to age 85. Marcia plans to retire at age 62 and she expects to live...
The Saleemi Corporation's $3,000 bonds pay 5 percent interest annually and have 13 years until maturity. You can purchase the bond for $800. a. What is the yield to maturity on this bond? b. Should...
An investor contributes $726.00 per quarter in an account that pays 4.20% APR with quarterly compounding. The first contribution will be made next quarter. What is the future value of this account?
Consider the following version of the Cournot duopoly game in which Firm 1 and Firm 2 simultaneously and independently select quantities to produce of an identical good. Firm 1 can produce any...
Why is homeostasis defined as the "relative constancy of the internal environments? Does negative feedback or positive feedback tend to promote homeostasis?
Suppose that two players (let's call them A and B) play a game where player A has the opportunity to move a game piece up or down, while player B can choose left or right. Payoffs for this game are...
Consider the demand for broadband Internet service, given as follows: QD = 224 4P, where Q is the number of subscribers in a given area (in hundreds) and P is the price in dollars per month. This...
You are a USDA pork analyst, charged with keeping up-to-date on developments in the market for "the other white meat." Recently, the demand for beef decreased. a. Explain how pork and beef might be...
Refer to the nanopillar height data on page 25. Using the $95 \%$ confidence interval, based on the $t$ distribution, for the mean nanopillar height (a) decide whether or not to reject \(H_{0}:...
Refer to the green gas data on page 241 . Using the $95 \%$ confidence interval, based on the $t$ distribution for the mean yield (a) decide whether or not to reject \(H_{0}: \mu=5.5...
Repeat Exercise 7.69 but replace the $t$ test with the large sample $Z$ test. Data From Exercise 7.69 7.69 Refer to the labor time data in Exercise 7.3. Using the 90% confidence interval, based...

You and a friend each put in $20,000 to capitalize the corporation (and you each get 10,000

Question:

Expert Answer:

Balance Sheet Amount Assets Truck 20000 Cash 15000 Total Assets 35000 Liabilities Loan payable 5000 ... View the full answer

Microeconomics

Students also viewed these finance questions