Required information [The following information applies to the questions display

Question

Required information [The following information applies to the questions displayed below.] Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation: Acquired $35,000 cash from the issue of common stock. Borrowed $47,000 cash from National Bank. Earned cash revenues of $63,000 for performing services. Paid cash expenses of $52,500. Paid a $2,500 cash dividend to the stockholders. Acquired an additional $35,000 cash from the issue of common stock. Paid $12,000 cash to reduce the principal balance of the bank note. Paid $46,000 cash to purchase land. Determined that the market value of the land is $64,000. Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimal places.)

Investors - _____%

Creditors - _____%

Earnings - _____%

Explanation / Answer

Assets at the end of the 1st year: Cash (35000+47000+63000-52500-2500+35000-12000-46000) 67000 Land at cost 46000 Total assets 113000 Liabilities & Equity at the end of the 1st year: Common stock = 35000+35000 = 70000 Borrowings National Bank = 47000-12000 = 35000 Retained earnings = 63000-52500-2500 = 8000 Total liabilities and equity 113000 Investors - 70000/113000 = 61.95% Creditors - 35000/113000 = 30.97% Earnings - 8000/113000 = 7.08% TOTAL 100.00%

Related Questions

Navigate

• Browse (All)
• Browse R
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.