Short Problems
1.Total assets, liabilities, and shareholders' equity are $7,000, $5,000, and $1,000 before a new machine is purchased for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?
2.Total assets, liabilities, and shareholders' equity are $14,000, $7,000, and $7,000 before a new copy machine is purchased in exchange for a $1,000 note payable. What are the new amounts of assets, liabilities, and shareholders' equity after this event?
3.Total assets, liabilities, and shareholders' equity are $5,000, $1,500, and $3,500 before common stock is issued for $500 cash. What are the new amounts of assets, liabilities, and shareholders' equity after this event?
4.Total assets, liabilities, and shareholders' equity are $6,000, $4,000, and $2,000 before $1,000 is received in exchange for a $1,000 bond payable. What change occurred to liabilities? Why is there no change in shareholders' equity?
5.Mingo Company has been in business several years. During January of 2010, the following transactions occurred:
Paid employees $6,000 for wages during January.
Paid $2,000 cash for other operating expenses of which $1,000 related to December and the balance related to January.
Paid utilities and rent for January in the amount of $1,800.
Paid a cash dividend to shareholders in the amount of $900 during January.
How much is total
Expenses
that Mingo Company will report for January 2010? Why is this amount different than the amount paid during the month?