Essay
The following balance sheet information is given for Minerva, Inc., at June 30, 2019:
Assume that, during the next three days, the following transactions occurred:
July 1 Paid $15,000 on accounts payable.
2 Purchased equipment for $75,000 and gave a note payable for the amount due.
3 Declared and paid a cash dividend, $12,000.
a. What was the amount of retained earnings on June 30, 2019?
b. Assume a balance sheet is prepared on July 3, 2019, after the three transactions have occurred:
(1) What amount of total assets would appear?
(2) What amount of total liabilities would appear?
(3) What amount of stockholders' equity would appear?
Correct Answer:
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a. $30,000 Cash + $102,000 Accounts Rece...View Answer
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