Reference no: EM133118698

Question - The following questions are independent of one another.

1. Wahzoo Ltd received $210,000 cash invested by its owners. What is the effect on the basic accounting equation?

2. Squirrely Inc. buys equipment for $210,000 and pays for one third in cash and the other two thirds is financed by a note payable, Show the effect on the basic accounting equation.

3. Assume Horkup Corporation's January 1, 2021, financial position was: Assets, $152,000 and Liabilities, $59,000. During January 2021, the company completed the following transactions:

(a) paid on a note payable $10,000 (no interest was paid);

(b) collected an accounts receivable, $8,500;

(c) paid an accounts payable, $5,000; and

(d) purchased a truck, $7,000 cash, and a took out a loan for $20,000 (note payable).

What is Horkup Corporation's financial position at the end of January as reflected by the basic accounting equation?