The bookkeeper for Wellbilt Mfg. made the following journal entry on January 30, 2018:

Dr Cr

Land.................................................... 125,000

Building................................................ 55,000

Cash............................................. 40,000

Notes Payable................................ 140,000

5. Refer to the above data. This transaction involves:

a The sale of land and building for $180,000

b Payment of $40,000 on a note payable

c An increase in liabilities of $140,000

d The receipt of $40,000 cash

6. Refer to the above data. Before the journal entry above, Wellbilt had assets, liabilities, and owner’s equity of $460,000, $110,000, and $350,000, respectively.

14. What are total assets immediately after the above transaction occurs?

a $490,000

b $640,000

c $600,000

d $630,000

14. What are total liabilities immediately after the above transaction occurs?

a $180,000

b $150,000

c $250,000

d $450,000