Liabilities .............................................................................. 75,000
Stockholders’ Equity .............................................................................. 50,000
Shortly thereafter, all of the assets were sold for cash.
How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?
Cash Received for Balances Immediately After Sale
the Assets Assets – Liabilities = Stockholders’ Equity
Cash A $135,000 $________ $________ $________
Cash B 120,000 ________ ________ ________
Cash C 105,000 ________ ________ ________
Ans: N/A, LO: 3, Bloom: AN, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Business Economics
Solution 202
Cash Received for Balances Immediately After Sale
the Assets Assets - Liabilities = Stockholders’ Equity
Cash A $135,000 $135,000 $75,000 $60,000 (Assets – Liab.)
Cash B 120,000 120,000 75,000 45,000 (Assets – Liab.)