1. In a recent business transaction, land was exchanged for cash. Did the amount of cash increase or decrease?
2. Gupta Company has $250,000 of assets, $60,000 of liabilities, and $90,000 of common stock. What percentage of the assets was provided by retained earnings?
3. To gain a clear understanding of the balance sheet, try to create one that describes your personal financial condition. First list your assets, then your liabilities. Determine the amount of your equity by subtracting your liabilities from your assets.