On January 1, 2010, Lio Corporation has assets equal to four times the amount of its liabilities. Total liabilities on January 1, 2010, are $1,000,000. During January 2010, Lio Corporation engaged in the following five transactions:
January 5 Purchased equipment for $100,000 on credit.
January 7 Purchased inventory for $63,000 cash.
January 14 Made a $25,000 partial payment for equipment purchased on January 5.
January 28 Purchased office supplies for $2,000 cash.
January 31 Sold common stock for $100,000 cash.
Required:

Question

On January 1, 2010, Lio Corporation has assets equal to four times the amount of its liabilities. Total liabilities on January 1, 2010, are $1,000,000. During January 2010, Lio Corporation engaged in the following five transactions:
January 5	Purchased equipment for $100,000 on credit.
January 7	Purchased inventory for $63,000 cash.
January 14	Made a $25,000 partial payment for equipment purchased on January 5.
January 28	Purchased office supplies for $2,000 cash.
January 31	Sold common stock for $100,000 cash.
Required:

Quizplus · Accepted Answer

The Answer of On January 1, 2010, Lio Corporation has assets equal to four times the amount of its liabilities. Total liabilities on January 1, 2010, are $1,000,000. During January 2010, Lio Corporation engaged in the following five transactions:
January 5	Purchased equipment for $100,000 on credit.
January 7	Purchased inventory for $63,000 cash.
January 14	Made a $25,000 partial payment for equipment purchased on January 5.
January 28	Purchased office supplies for $2,000 cash.
January 31	Sold common stock for $100,000 cash.
Required:

On January 1, 2010, Lio Corporation Has Assets Equal to Four