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2 March, 06:00

Maben Company was started on January 1, 2018, and experienced the following events during its first year of operation:Acquired $37,000 cash from the issue of common stock. Borrowed $33,000 cash from National Bank. Earned cash revenues of $55,000 for performing services. Paid cash expenses of $48,500. Paid a $1,700 cash dividend to the stockholders. Acquired an additional $27,000 cash from the issue of common stock. Paid $8,000 cash to reduce the principal balance of the bank note. Paid $60,000 cash to purchase land. Determined that the market value of the land is $84,000. Determine the percentage of assets that were provided by investors, creditors, and earnings.

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  1. 2 March, 06:19
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    The assets as given above are as follows:

    Acquired $37,000 cash from the issue of common stock.

    Borrowed $33,000 cash from National Bank less paid $8,000 cash to reduce the principal balance of the bank note which gives a balance of $25,000.

    Earned cash revenues of $55,000 for performing services less paid cash expenses of $48,500 less paid a $1,700 cash dividend to the stockholders.

    This gives a total earned revenue of $4,800.

    Acquired an additional $27,000 cash from the issue of common stock.

    The market value of the land is $84,000 less paid $60,000 cash to purchase land = $24,000.

    Total asset = $37,000 + $25,000 + $4,800 + $27,000 + $24,000 = $117,800

    Total asset provided by investors, creditors, and earnings = $37,000 + $25,000 + $4,800 + $27,000 = 93,800

    P ercentage of assets that were provided by investors, creditors, and earnings = 93,800 / 117,800 x 100% = 79.6%
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