129. Each of the following requirements is independent of the others.
a) Bruno Corporation has liabilities of $95,000 and equity of $110,000. What is the amount of Bruno's assets? _________________________________________________
b) Wilder Company has assets of $320,000 and liabilities of $100,000. What is the amount of equity? ______________________________________________________
c) Limon Company has assets of $90,000 and liabilities of $40,000. What is the amount of claims? _____________________________________________________________
a) Assets = liabilities + equity = $95,000 + 110,000 = $205,000
b) Assets - liabilities = equity. Equity = $320,000 - 100,000 = $220,000
c) Assets = claims. Total amount of claims = $90,000
130. The following events occurred for Bijan Company during 2011, its first year in operation:
1. issued stock to investors for $35,000 cash
2. borrowed $15,000 cash from the local bank
3. provided services to its customers and received $22,000 cash
4. paid expenses of $18,000
5. paid $12,000 cash for land
6. paid dividend of $2,000 to stockholders
7. repaid $2,000 of the loan listed in item 2
Required: Show the effects of the above transactions on the accounting equation, below. Include dollar amounts of increases and decreases. The first is done for you. After entering all the events, calculate the total amounts of assets, liabilities, and equity at the end of the year.