Exercise 2.1 Just before Johnson Laboratories opened for business, Howard Johnson, the owner, had the following assets and liabilities. Determine the totals that would appear in the firm’s fundamental accounting equation (Assets = Liabilities + Owner’s Equity).

Exercise 2.1 Objectives 2-1, 2-2

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Cash $49,500 Laboratory Equipment 77,500 Laboratory Supplies 10,800 Loan Payable 15,200 Accounts Payable 11,375