Exam 2: Basic Financial Statements

Computation of assets,liabilities,and owners' equity after a series of transactions The December 31,2017 balance sheet of Charles Realty reported total assets of $900,000,total liabilities of $350,000,and owners' equity of $550,000.The following transactions occurred in January of 2018: (1)The business purchased land for $250,000,paying $100,000 cash and issuing a note payable for the balance. (2)The business collected accounts receivable totaling $45,000. (3)The business sold land costing $50,000 for $60,000 cash. (4)The business paid $50,000 of the note payable. Compute the following at January 31,2018: (A. )Total assets (B. )Total liabilities (C. )Owners' equity

Liabilities are usually listed in order of magnitude,from smallest dollar amount to largest dollar amount.