Posted by candy on Saturday, September 2, 2006 at 10:33am.
The proprietors of two businesses, L.L. Sams Company and Melinda Garcia Career Services, have sought business loans from you. To decide whether to make the loans, you have requested their balance sheet to view.
L.L. Sams Company Balance Sheet August 31, 2004
Accounts Receivable 14,000
Merchandise Inventory 85,000
Store supplies 500
Furniture and fixtures 9,000
Total assets $211,500
Accounts Payable 12,000
Note Payable 18,000
Total Liabilities 30,000
L.L. Sams, capital 181,500
Total Liabilities And owner's equity $211,500
Melinda Garcia Career Services Balance Sheet August 31, 2004
Accounts Receivable 7,000
Office supplies 1,000
Office furniture 56,000
Accounts Payable $6,000
Note Payable 168,000
Total Liabilities 174,000
Melinda Garcia, capital 70,000
Total liabilities And owner's equity $244,000
I would appreciate the positive response and answer. Please explain I would like to understand this question. Many Thanks!!
Accounting is not my area. But the answer to this problem is obvious. Melinda is already up to her eyeballs in debt; she already owes 168,000+6000 on a business with total assets of 244,000. Further, the 168K far exceeds Melinda's personally invested capital of 70,000. Compare this to Sam.
Answer this Question
accounting - Unit 1 Individual Project Deliverable Length: 2-3 paragraphs ...
Cost accounting - Flexibility is said to be the hallmark of modern management ...
Westwood - Flexibility is said to be the hallmark of modern management ...
accounting - identify three external users of accounting information and ...
introduction to accounting - the proprietos of two businesses, L.L. sams company...
Accounting - Accounting professionals must sometimes choose between two or more ...
accounting - Identify at least three external users of accounting information ...
accounting - Please help Identify at least three external users of accounting ...
Accounting - Much of accounting is directed at servicing the information needs ...
accounting - o How are entries made under each type of accounting? o How does ...