Effect of Transactions on Accounting Equation a. A vacant lot acquired for $398,000 is sold for $768,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity? If there is no change, select "No change from the dropdown and then enter a 'O' in the amount box Effect Amount 1. Total Assets 2. Notal Liabilities 3. Owner's Equity b. Assume that the seller owes $111.500 on a loan for the land. After receiving the $763,000 cash in (a), the seller pays the $111,500 owed. What is the effect of the payment on the total amount of the seller's (1) assets, (2) liabilities, and (3) owner's equity? If there is no change, select 'No change from the dropdown and then enter a 'o' in the amount box Effect Amount 1. Total Assets 2. Total Liabilities 3. Owner's Equity c. Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Owner's Equity) of the accounting equation? Accounting Equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $734,490 and liabilities of $232,100. Using the accounting equation and considering each case Independently, determine the following amounts a. Annie Rasmussen, capital, as of December 31, 2018 b. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $116,050 and liabilities increased by $69,780 during 2019. c. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $58,020 and liabilities increased by $20,570 during 2019. d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96,950 and liabilities decreased by $36,720 during 2019. e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $925,460, Babies were $150,570, and there were no additional investments or withdrawals Accounting Equation The total assets and total liabilities (in millions) of ThriftShop, Inc. and Bullseye Corporation are shown below. ThriftShop, Inc. Bullseye Corporation Assets Liabilities $21,105 4,010 $28,914 2,313 Determine the owners' equity of each company. million ThriftShop, Inc. owners' equity Bullseye Corporation owners' equity 26,601 million Ratio of Liabilities to Stockholders' Equity The Builder's Outlet, is the world's largest home improvement retailer and one of the largest retailers in the United States based on net sales volume. The Builder's Outlet operates over 2,200 Builder's Outlet stores that sell a wide assortment of building materials and home improvement and lawn and garden products Builder's Outlet reported the following balance sheet data (in millions): Year 2 Year 1 Total assets $73,062 $117,165 Total stockholders' equity 29,700 32,100 a. Determine the total liabilities at the end of Years 2 and 1. Year 2 $ 43,362 million Year 1 $ 85,065 million b. Determine the ratio of liabilities to stockholders' equity for Year 2 and Year 1. Round your answers to two decimal places Year 2 Year 1 c. The ratio of abilities to stockholders' equity in risk for creditors from Year 1 to Year 2 indicating
