Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:1. Acquired $32,000 cash from the issue of common stock.2. Borrowed $38,000 cash from National Bank.3. Earned cash revenues of $50,000 for performing services.4. Paid cash expenses of $46,000.5. Paid a $1,200 cash dividend to the stockholders.6. Acquired an additional $22,000 cash from the issue of common stock.7. Paid $10,000 cash to reduce the principal balance of the bank note.8. Paid $55,000 cash to purchase land.9. Determined that the market value of the land is $77,000. f. Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimalplaces.)InvestorsCreditorsEarningsAssets%%%

Answered: Maben Company was started on January 1,…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
1. Acquired $32,000 cash from the issue of common stock.
2. Borrowed $38,000 cash from National Bank.
3. Earned cash revenues of $50,000 for performing services.
4. Paid cash expenses of $46,000.
5. Paid a $1,200 cash dividend to the stockholders.
6. Acquired an additional $22,000 cash from the issue of common stock.
7. Paid $10,000 cash to reduce the principal balance of the bank note.
8. Paid $55,000 cash to purchase land.
9. Determined that the market value of the land is $77,000.

f. Determine the percentage of assets that were provided by investors, creditors, and earnings. (Round your answers to 2 decimal
places.)
Investors
Creditors
Earnings
Assets
%
%
%

Expert Solution

Step 1

An asset is anything that will be useful in the future and may be sold for cash. Current assets and fixed assets are the two main categories of assets. Current assets include items like prepaid expenses, cash, and cash equivalent, accounts receivable, and inventory, whereas examples of fixed assets include real estate, buildings, and machinery.
The future responsibilities that a business must fulfill are known as liabilities. The two categories of liabilities are current liabilities and long-term liabilities. Current liabilities include debts owed to creditors, accounts payable, and notes payable; long-term obligations include bonds payable and loans with a long-term maturity.
Stockholders' equity is the owners' money. It comprises equity and retained earnings.

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