Reference no: EM133004182
Question - On June 30, 2014, the balance sheet of Zorab & Co. showed total assets of $400,000, total liabilities of $300,000, and owner's equity of $100,000. The following transactions occurred in July of 2014:
The owner invested an additional $70,000 cash in the business.
The business purchased equipment for $150,000, paying $60,000 cash and issuing a note payable for $90,000.
The business paid off $40,000 of its accounts payable.
As of July 31, 2014, what best represents the accounting equation of this company:
-$470,000 = $300,000 + $170,000
-None of the others alternatives are correct
-$490,000 = $390,000 + $100,000
-$520,000 = $350,000 + $170,000
-$430,000 = $260,000 + $170,000
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