The assets of the business comprise of P100,000 cash and P900,000 landand building. The land and building has unpaid mortgage payable, theonly liability of the business. The owner's equity is P650,000. How muchis the business liability?

Total Assets=Cash+Land & Building=P 100,000+P 900,000=P 1,000,000

Answered: The assets of the business comprise of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

(c) If the assets and the liabilities of an enterprise amount to Rs. 40 (b) If the liabilities and the capital of an enterprise amount to Rs. 10 Re 30.000 respectively, what is the total amount of the assete It the assets and the llabilities of an enterprise amount to Pe Rs. 10,000 respectively, what is the amount of capital? Answer: (a) Rs. 10,000; (b) Rs. 40,000; (c) Rs. 30,000 PROBLEMS 1. Prepare Accounting Equation on the basis of the following ) Rahim started business with cash Rs. 20,000 () Rahim purchased furniture for cash Rs. 2,000. (i) (ii) Rahim paid rent Rs. 200. (iv) Rahim purchased goods on credit Rs. 3,000. (v) Rahim sold goods (cost price Rs. 2,000) for Rs. 5,000 on cash. 2. Prove that the Accounting Equation is satisfied in all the following tra Ahmad: (1) Commenced business with cash Rs. 60,000. () Rent paid in advance Rs. 500. (i) Purohe
Assume there is no mortgage on the land, market value is $200 and the basis of the land is $60. The corporation borrows $5 from a bank and gives the $5 to W along with 1009% of the stock in exchange for the land. B.) What is the amount realized? What are the components of the amount realized?
Company X is a manufacturing firm with total liabilities of Php3,000,000. During the year, it borrowed funds from the bank to purchase machinery. How should it account for the specific borrowing costs related to the loan? Expensed since Company X is an SME Capitalized since the borrowing is for a qualifying asset Capitalized whether or not Company X is an SME Expensed whether or not Company X is an SME
Assume there is no mortgage on the land, market value is $200 and the basis of the land is S60. The corporation borrows $5 from a bank and gives the $5 to W along with 100% of the stock in exchange for the land. A.) What is the fair market value of the stock? (Think of the balance sheet, what are the assets and the liabilities?)
19. A taxpayer engaged in the practice of his profession bought a brand-new motor vehicle in the amount of Php 5 Million. Which is FALSE? S1: Depreciation expense can be claimed if the asset shall be used in business. S2: The motor vehicle, if used in business, shall be classified as an ordinary asset. Group of answer choices d. Both are true b. Only S2 is false a. Only S1 is false c. Both are false
The following table shows some selected financial information of Salalah Company. Net Profit/Income 44000 Interest Expenses 4000 Rent Expenses 2000 Vehicles 20000 Receivables 8000 Inventories hoo00 Machinery 21000 Prepaid Expenses Bills Payable 04000 Long terrm loans 28000 According to the given information, which of the following shows the Return an Assets? Select one: O a. 1 O b. 0.5O c. 0.75 O d. 0.25
The assets of the business comprise of ₱100,000 cash and ₱900,000 land and building. The land and building have unpaid mortgage, the only liability of the business. The owner‟s equity is ₱650,000. How much is business liability
Fill in the blanks: If the economic obligations of a business amount to P696,000 and its equity amounts to P385,000, then is the total amount of the economic resources of the business. < Previous Continue
Please show the solution for a guide.
Upc Rosilyn trades an old parcel of land with an adjusted basis of $13,000 and an outstanding loan liability balance of $2,000 for a new parcel of land valued at $9,000 plus $3,000 cash from Bob's Company. Bob assumes Rosilyn's loan balance. What is Rosilyn's amount realized on the transaction? Oa. $13,000 Ob. $14,000 Oc, $3,000 Od. $9,000 Oe. $12,000 (Previous Next 1:57 A 5/11/202

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

The assets of the business comprise of P100,000 cash and P900,000 land and building. The land and building has unpaid mortgage payable, the only liability of the business. The owner's equity is P650,000. How much is the business liability?