On January 1, Company E has total assets of $300,000 and total liabilities of $200,000. On...

 

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On January 1, Company E has total assets of $300,000 and total liabilities of $200,000. On January 2, Company E entered into the following three transactions. a. Sold inventory costing $105,000 to customers for $150,000. The customers paid $100,000 in cash and the remaining $50,000 was put on the customers' accounts. b. Paid employee wages totaling $28,000. These wages had not been previously recorded. c. Borrowed $85,000 cash with a long-term bank loan. After these three transactions, compute Company E's TOTAL OWNERS' EQUITY. On January 1, Company E has total assets of $300,000 and total liabilities of $200,000. On January 2, Company E entered into the following three transactions. a. Sold inventory costing $105,000 to customers for $150,000. The customers paid $100,000 in cash and the remaining $50,000 was put on the customers' accounts. b. Paid employee wages totaling $28,000. These wages had not been previously recorded. c. Borrowed $85,000 cash with a long-term bank loan. After these three transactions, compute Company E's TOTAL OWNERS' EQUITY.

Answer rating: 100% (QA)

Given Initial Total Assets 300000 Initial Total Liabilities200000 Initial Owners Equity Initial Owne... View the full answer