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Presented below is the balance sheet for Collins Family Dentistry on January 1 of the current year. COLLINS FAMILY DENTISTRY Balance Sheet January 1, 20__

Assets Liabilities & Stockholders’ Equity
Cash $ 20,000 Liabilities:
Accounts receivable 31,000 Accounts payable $ 45,000
Land 190,000 Total liabilities $ 45,000
Building 225,000 Owners’ equity:
Equipment 35,000 Capital stock 456,000 Total liabilities and
Total assets $501,000 owners’ equity $501,000

During the first few days of January, the following transactions occurred:

Jan 1 The business borrowed $60,000 from the bank, giving a note payable due in 90 days. 3 Additional capital stock was issued in exchange for $27,000 cash. 3 Equipment was purchased for $38,000 on credit. 5 The business collected $16,000 of its accounts receivable and paid off $23,000 of its accounts payable.

Indicate your answer to each of the following questions in the space provided.

1 On January 6, total assets of the business amount to: a $501,000. b $603,000. c $580,000. d $576,000.

2 On January 6, owners’ equity amounts to: a $456,000. b $27,000. c $483,000. d $543,000.

3 On January 6, the liability for accounts payable is: a $83,000. b $38,000. c $30,000. d $60,000.

4 On January 6, accounts receivable amount to: a

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