Jane established a sole proprietorship to sell and service personal computers. Use the balance sheet equation to analyze the effects of the following transactions: 

• a. Invested $50,000 in the business. 
• b. Purchased a four-wheel drive pickup truck for $22,000 (on account) that will be used in the business.
  c. The truck's fuel and repair annual costs were $1,750 (paid in cash).
• d. Shortly after buying the truck, it proved to be a "lemon" and Jane pushed it over a cliff! Explain to Jane how the loss of this truck affects her balance sheet. If Jane had not ever paid for the truck, who is responsible for the loss of the truck?
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Answer rating: 100% (QA)

Assets Liabilities Owners Equity a 50000 50000 b 22000 22000 c 1750 1750 d 22000 22000 Balance 482... View the full answer