Answer:
The correct answer for option (1) = $281,000, option (2) = $158,000, option (3) = $83,000 and option (4) = $356,000.
Explanation:
According to the scenario, the computation for the given data are as follows:
Total cash = $356,000
Purchased equipment = $172,000
Cash down payment of equipment = $56,000
Cash payment for note payable = $33,000
Cash by sell a piece of equipment = $14,000
(1). So, we can calculate the balance in cash account by using following method:
Cash balance = Total cash - Cash down payment of equipment - Cash payment for note payable + Cash by sell a piece of equipment
= $356,000 - $56,000 - $33,000 + $14,000
= $281,000
(2). So, we can calculate the total assets by using following method:
Total Assets = Purchased equipment - Cash by sell a piece of equipment
= $172,000 - $14,000
= $158,000
(3). So, we can calculate the balance in note payable account by using following method:
Note payable balance = Purchased equipment - Cash down payment of equipment - Cash payment for note payable
= $172,000 - $56,000 - $33,000
= $83,000
(4). So, we can calculate the total owner's equity by using following method:
Total Owner's equity = Total cash
= $356,000
