Page 36 - Account for Ag - 2019

2-12 Accounting for Agriculture CH 2]

Name:

8. Charles Wright has cash in the bank in the amount of $5,600. He owns a house in town which he pur-
chased for $87,000 and the local savings and loan has a mortgage on the house for $45,000. He has a
pickup that was purchased new for $13,500. His household furniture was purchase over time for
$9,000. Mr. Wright also owns a 40 acre orchard outside of town that cost $90,000. The Land Bank
holds a mortgage on the orchard for $32,000. What are the totals of Mr. Wright's (1)assets? (2)
liabilities? and (3)his equity?

ASSETS
Cash $ ______
House ______
Pickup ______
Furniture ______
40ac Orchard ______
Total Assets $ ______

LIABILITIES
House loan $ ________
Land bank ________
Total Liabilities $ ______

EQUITY
Mr. Wright Equity $ ______

1)
2)
3)

9. For Mr. Wright, which of the following are business transactions and which are not?

a)
b)
c)
d)
e)
f)
g)
h)

Copyright Material