Ask Question
BusinessBusiness
13 February, 01:08

The company purchases land for $24,000 by paying cash $6,000 and taking a 10-year mortgage for $18,000 (assume zero interest rate). What is the balance sheet equation for that?

+1
Answers (1)
  1. 13 February, 02:48
    0
    Land - cash = Total liabilities

    Explanation:

    As we know that

    Total assets = Total liabilities + stockholder equity

    Where,

    Land = $24,000

    Cash = $6,000

    And long term liabilities = $18,000

    So, the equation would be

    Land - cash = Total liabilities

    $24,000 - $6,000 = $18,000

    $18,000 = $18,000

    So by this we can match and balanced our company balance sheet as we see that the amount are equaled and matched.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The company purchases land for $24,000 by paying cash $6,000 and taking a 10-year mortgage for $18,000 (assume zero interest rate). What is ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. the job consisted of 8,000 units and was completed in 22,000 hours at a total labor cost of $198,000. what is the total labor cost variance?
Answers (1)
Integrated Brand Promotion a. is only important for national advertising campaigns. b. pertains only to campaigns involving three or more media options. c.
Answers (1)
The Bacon Company acquired new machinery with a price of $15,200 by trading in similar old machinery and paying $12,700. The old machinery originally cost $9,000 and had accumulated depreciation of $5,000.
Answers (1)
How to simplify - 3 p + 6p
Answers (2)
Select the correct answer from each drop-down menu. Choose the correct terms to complete the sentence. As the price of beef increases, consumption, which means that for the demand of beef, there is a (n) relationship between price and consumption.
Answers (1)
New Questions in Business
true or false Activity cost pools are factory overhead costs initially budgeted for activities, such as machine usage, inspections, moving, production setups, and engineering activities.
Answers (1)
Prepare the Statement of Cash Flows for Smart Touch Learning for the month ended December 31, 2016 from the provided information. Within each section of the statement, use the drop-down menus to enter the accounts.
Answers (1)
A company is considering purchasing a machine for $21,000. The machine will generate an after-tax net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback period for the new machine? a. 4 years. b. 6 years. c.
Answers (1)
A company purchased a delivery van for $15,500 with a salvage value of $2,300 on September 1, Year 1. It has an estimated useful life of 4 years.
Answers (1)
Money has a time value because
Answers (1)
Home » Business » The company purchases land for $24,000 by paying cash $6,000 and taking a 10-year mortgage for $18,000 (assume zero interest rate). What is the balance sheet equation for that?
Sign Up Forgot Password?