1) T-Accounts: | |||||||||
DEBIT | AMOUNT $ | CREDIT | AMOUNT $ | ||||||
Cash A/C | |||||||||
a | 51000 | b | 11500 | ||||||
c | 3500 | ||||||||
d | 6200 | ||||||||
e | 18000 | ||||||||
CB | 11800 | ||||||||
Equipment A/C | |||||||||
b | 46000 | ||||||||
Notes Payable A/C | |||||||||
e | 18000 | b | 34500 | ||||||
CB | 44500 | d | 28000 | ||||||
Additional Paid in capital A/C | |||||||||
d (withdrawal) | 34200 | a | 76750 | (being for personal purpose) | |||||
CB | 42550 | ||||||||
Notes Receivable A/C | |||||||||
c | 3500 | ||||||||
Land A/C | |||||||||
a | 26000 | ||||||||
Common Stock A/C | |||||||||
a | 250 | ||||||||
2) The Accounting Equation: | |||||||||
Assets 87300 (ie. 11800+46000+3500+26000) = Liabilities 44500 + Stockholder's Equity 42800(ie. 250+42550) | |||||||||
3) Market Value per share = Book Value / Number of shares = (250 + 42550)/2500 = 42800/2500 = $17.12 per share | |||||||||
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