Jones Enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners. The company immdeiately purchased land that cost $12,000. a.) record the events under an accounting equation b. after all events have been recorded, jones's obligations to creditors represent what percentage of total assets? c. )after all events have been recorded, jones's stockholders equity represent what percentage of total assets? d. assume the debt is due. Given that Jones has $10,000 in stockholder's equity, can the company repay the creditors at this point?
Jones Enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners. The company immdeiately purchased land that cost $12,000. a.) record the events under an accounting equation b. after all events have been recorded, jones's obligations to creditors represent what percentage of total assets? c. )after all events have been recorded, jones's stockholders equity represent what percentage of total assets? d. assume the debt is due. Given that Jones has $10,000 in stockholder's equity, can the company repay the creditors at this point?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jones Enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners. The
company immdeiately purchased land that cost $12,000. a.) record the events under an accounting
equation b. after all events have been recorded, jones's obligations to creditors represent what percentage
of total assets? c.)after all events have been recorded, jones's stockholders equity represent what
percentage of total assets? d. assume the debt is due. Given that Jones has $10,000 in stockholder's equity,
can the company repay the creditors at this point?
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