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Josey Enterprises was started when it acquired $4,000 cash from creditors and $8,000 from owners. The company immediately purchased land that cost $10,000.
Required:
a. Record the events under an accounting equation.b. After all events have been recorded, Josey's obligations to creditors represents what percent of total assets? c. After all events have been recorded, Josey's stockholders' equity represents what percent of total assets? d. Assume the debt is due. Given that Josey has $8,000 in stockholders' equity, can the company repay the creditors at this point? Why or why not?
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