Answer:
The answer of each requirement is given below.
A.) record the events under an accounting equation
Accounting equation is given below.
Asset = Equity + Liability
Land + Cash = Equity + liability
12,000 + 4000 = 10,000 + 6,000
16,000 = 16,000
B.) After all events have been recorded, Jones's obligations to creditors represent what percent of total assets
Percentage = 6,000/16,000*100 = 37.5%
C.) after all events have been recorded, Jones stockholders equity represents what percent of total assets?
Equity percentage = 10,000/16,000* 100 = 62.5%
D.) assume the debt is due. given that jones has $10,000 in stock holders' equity can the company repay the creditors at this point? why or why not
No, the company will not be able to pay debt as the company has acquired land of 12,000 dollars and has only 4,000 dollars in liquid form.
