On January 10, Evergreen Market purchased two lots of land of equal size for a total of $20,000. It thereby acquired an asset, land. It paid

$4,000 in cash and gave a 10-year mortgage for the balance of $16,000.

(Use the term “Mortgage Payable” for the liability.)

Change the following January 9 balance sheet so that it reports the financial condition on January 10.

Transcribed Image Text:

EVERGREEN MARKET BALANCE SHEET AS OF JANUARY 9 Assets Liabilities & Equity $46,700 Accounts Payable $ 4,000 1,800 Note Payable 10,000 Cash.. Accounts Receivable. Inventory 6,300 Prepaid Insurance 500 Berg, Capital 40,000 Retained Earnings 1,300 Total $55,300 Total $55,300