Jan 20 Questions

Jan 20 Questions - SI Session Monday, August 31, 2009 1....

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SI Session Monday, August 31, 2009 1. Jenkins Widgets Company recorded $1.2 million of assets as at January 1, 2009. a.) If they also recorded $700,000 in liabilities, how much should they have in total for stockholder’s equity? b.) If the company spends $15,000 cash on new equipment, how will this equation from part (a) be affected? c.) What if a loan of $15,000 was taken out to pay for the new equipment? d.) Why does this equation hold always hold true for all companies?
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2. Boilermaker, Inc. is a manufacturing company based in West Lafayette, Indiana. The company traditionally lists all relevant business accounts in alphabetical order and uses these accounts to create all appropriate financial statements. Using the accounts below, create a balance sheet for Boilermaker, Inc. in good form. All accounts are as at December 31, 2008. Not all accounts may be used. Accounts Payable 400 Dividends Paid 500 Accounts Receivable 800 Land 14,200 Bank Loan 3,700 Retained Earnings 7,800 Capital Stock
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Jan 20 Questions - SI Session Monday, August 31, 2009 1....

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