The company has assets equal to 6,150,000 and liabilities equal to 2,650,000. Before the year ended cash was borrowed from the bank amounting to 1,500,000 half of which was used to buy equipment and the other half to pay for the liabilities which were already past due. What is the total equity of the company at year end ? Please show solution.

The company has assets equal to 6,150,000 and liabilities equal to 2,650,000. Before the year ended cash was borrowed from the bank amounting to 1,500,000 half of which was used to buy equipment and the other half to pay for the liabilities which were already past due. What is the total equity of the company at year end ? Please show solution.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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