Quiz Ch MHE Reader x \', S. dvidendBB-Google × O https://newcon connect.html Sav

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Quiz Ch MHE Reader x ', S. dvidendBB-Google × O https://newcon connect.html Saved Help Save &ExitSubmi 4 started when it acquired $7.500 cash from creditors and $17,500 from owners. The company Immediately purch ised land that cost $21,000 Required an accounting equation.(Enter any decreases to account balances with a minus sign.) 00313 Accounting Equation Cash LandCreditors Stockh 25,000(21,000) 7,0017.500 Bal. $ 25,000 (21,000) 7,500$17,500 b. After all events have been recorded, Jones's obligations to creditors represent what percent of total assets? c. After all events have been recorded, Jones's stockholders' equity represents what percent of total assets? pg ipg 12.JPg 5 by....zip

Explanation / Answer

Accounting equation:

b) Percentage of total assets = 7500*100/25000 = 30%

c) Percentage of total assets = 17500*100/25000 = 70%

Cash + Land = creditors + Stockholder's equity $25000 + $0 = $7500 + $17500 -$21000 + $21000 Bal. $4000 + $21000 = $7500 + $17500

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