Company total amount of liabilities plus equity

Assignment Help Accounting Basics
Reference no: EM13893517

Refer to this chapter's opening feature about Twitter. Assume that the owners decide to open a new Website devoted to micro blogging for accountants and those studying accounting. This new company will be called AccounTwit.

Required:

1. AccounTwit obtains a $500,000 loan and the three owners contribute $250,000 in total from their own savings in exchange for common stock in the new company.
a. What is the new company's total amount of liabilities plus equity?
b. What is the new company's total amount of assets?

2. If the new company earns $80,250 in net income in the first year of operation, compute its return on assets (assume average assets equal $750,000). Assess its performance if competitors average a 10% return.

Reference no: EM13893517

Questions Cloud

Describe the revenue trend for rmcf : Visit the EDGAR database at (www.sec.gov). Access the Form 10-K report of Rocky Mountain Chocolate Factory (ticker RMCF) filed on May 24, 2011, covering its 2011 fiscal year.
Apply the concepts of project and project manager : To apply the concepts of project and project manager to authentic situations and to reflect on the applicability of the concepts of project and project manager to a student's project
How the community can best support the school : For this assignment, you are to take the part of a teacher who has been invited to speak for 10-15 minutes to a community group (your choice) to discuss the school, what students are doing in/for the community, and how the community can best suppo..
Describe how technology impacts organizational culture : Describe how technology impacts organizational culture
Company total amount of liabilities plus equity : Refer to this chapter's opening feature about Twitter. Assume that the owners decide to open a new Website devoted to micro blogging for accountants and those studying accounting. This new company will be called AccounTwit.
Analyze what divisional structures are presented in product : Analyze what divisional structures are presented product
Read and reflect on the case study about sony : Read and reflect on the case study about Sony
Department meetings help : Include a discussion on the tools they could use, would department meetings help - please be sure to support your position with peer reviewed references.
Explain the ethical stance of all stakeholders involved : Identify the major stakeholders in your organization

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  The following transactions relate to bondinvestments of

the following transactions relate to bondinvestments of livermore laboratories. the companys fiscal yearends on

  Journal entries at the date of purhase

Soldan Corporation purchased a computer on December 31,2011, paying 30,000 down and a further payment due on December 31,2014.An interest rate of 10% is implicit in the purchase price. Soldan uses the Effective method and has December the 31 as y..

  Balanced scorecard is one of those management fads that

1. balanced scorecard is one of those management fads that will disappear several years in the future. in addition

  Valuation of the company using two different methods

• Valuation of the company using two different methods. One of the valuations must entail discounting of earnings, abnormal earnings, dividends or free cash flows.

  Journal entry record on stanton

On may 1, 2010, stanton company purchased 50000 of harris company's 12% bonds at 100 plus accured interest of $2,000. On June 30,2010, Stanton received its first semiannual interest. On February 1, 2011, Stanton sold 40,000 of the bonds at 103 plu..

  The cash balance per the accounting records

During the first quarter of 2010, the Payne Corporation entered into the following transactions:

  What would be the book value at end of year 1

A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of 5 years. If the truck was bought on July 3, what would be the book value at end of year 1?

  Case study of kk company

KK Company bought the delivery truck for $62,000 on January 1, 2009. They installed the rear hydraulic lift for $8,000 and paid sales tax of the $3,000.

  The bagging machine rate of return was

munch n crunch snack company is considering two possible investments a delivery truck or a bagging machine. the

  Having high sccounts recievable balances can definately be

having high sccounts recievable balances can definately be a risk for companies especially in todays economy. even

  Calculate the company break-even point in dollar sales

Calculate the company's break-even point in dollar sales. If sales are $1,800,000 above the break-even point, what will income be (i) pretax income and (ii) after-tax income?

  What are your thoughts on this situationwhat are your

think- what do you think caused or contributed to the recent market meltdown and what can we do to prevent it happening

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd