Friday
July 25, 2014

Homework Help: Introduction to Accounting

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

Assets
Cash $9,000
Accounts Receivable 14,000
Merchandise Inventory 85,000
Store supplies 500
Building 80,000
Furniture and fixtures 9,000
Land 14,000
Total assets $211,500

Liabilities
Accounts Payable 12,000
Note Payable 18,000
Total Liabilities 30,000

Owner's Equity
L.L. Sams, capital 181,500
Total Liabilities And owner's equity $211,500

Melinda Garcia Career Services Balance Sheet August 31, 2004

Assets
Cash $11,000
Accounts Receivable 7,000
Office supplies 1,000
Office furniture 56,000
Land 169,000

Liabilities
Accounts Payable $6,000
Note Payable 168,000
Total Liabilities 174,000

Owner's Equity
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

First Name:
School Subject:
Answer:

Related Questions

introduction to accounting - the proprietos of two businesses, L.L. sams company...
accounting - Unit 1 Individual Project Deliverable Length: 2-3 paragraphs ...
Business Environment and Recording Transactions - The proprietors of two ...
maths - BEGGING FOR HELP!!! EXAM IN 20 MINS LOST ON HOW TO DO THIS Q. Company ...
MAth - 1. Johnís loans for his business total $155,000. One of the loans is a ...
Growth model - Hello everyone. My task is to build a growth model for a company...
Algebra (HELP) - To buy both a new car and a new house, Tina sought two loans ...
Math - To buy both a new car and a new house, Tina sought two loans totalling $...
Intermediate Algebra - To buy both a new car and a new house, Tina sought two ...
algebra - To buy both a new car and a new house, Tina sought two loans totalling...

Search
Members