On June 1, 2018, Secretly Canadian Company prepared a balance sheet that shows the following: $\begin{array}{llr}
\text { Assets (no cash)} &\$100,000\
\text { Liabilities} &45,000\
\text { Stockholders' Equity} &55,000
\end{array}$

Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

Question

On June 1, 2018, Secretly Canadian Company prepared a balance sheet that shows the following: $\begin{array}{llr}
  \text {  Assets (no cash)} &\$100,000\
 \text {  Liabilities} &45,000\
 \text {  Stockholders' Equity} &55,000
\end{array}$
 
Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

Quizplus · Accepted Answer

The Answer of On June 1, 2018, Secretly Canadian Company prepared a balance sheet that shows the following: $\begin{array}{llr}
  \text {  Assets (no cash)} &\$100,000\
 \text {  Liabilities} &45,000\
 \text {  Stockholders' Equity} &55,000
\end{array}$
 
Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?