D G H K 4 E 2 Background Information: Anna and Company was created when it acquired $10,000 cash 3 from creditors and $14,000 from owners. To begin operations they immediately purchased land with cash for $7,500 5 Helpful Information: For this problem, you will have two transactions based on the two events that have occurred. 6 The first transaction is in relation to the company start up with cash and a line of credit. 7 The second transaction is to record the purchase of land by Anna and Company. 8 Don't forget that each side of the accounting equation must balance. 9 10 a) Record the events under the accounting equation 11 12 Cash Land = Creditors + Stockholders Equity 13 1 14 2 15 Balance $ $ S + 16 17 18 19 b) After all events have been recorded, Anna's obligations to creditors represent 20 what percentage of total assets: 21 Creditors Claim Total Assets 22 Percent of total #DIV/0! 23 24 c) After all the events have been recorded, Anna's Stockholders equity represents 25 what percentage of total assets 26 Investor's Claim Total Assets 27 Percent of total #DIV/0! Problem 1.1 Problem 1.2 Problem 1.3 Problem 1.4 Problem 1.5 Ready Problem 1.6 Type here to search