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///C/Users/Mano/ Downloads/Pre-class%20activity%20session%20%235%20HANDOUT%20and%20QUESTIONS%20(1).pdf Questions for the Pre-class Assignment #4 All Questions need to be answered in...

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Accounting

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///C/Users/Mano/ Downloads/Pre-class%20activity%20session%20%235%20HANDOUT%20and%20QUESTIONS%20(1).pdf Questions for the Pre-class Assignment #4 All Questions need to be answered in Webcourses for the Pre-class Assignment Please use the balance sheet below to answer the following six (6) questions: Scenario #1 ABC is a small business that is owned byone owner(Owner #1) who owns 100% of the 10,000 shares of outstanding no par common stock. ABC is seeking additional funds to expand their business. Another investor (Owner #2) is willing to invest $100,000 in their business. The offer includes $75,000 cash in exchange for the issuance of 5,000 new shares of common stock and the remaining $25,000 cash would be lent to ABC in the form of a 5 year loan. Balance Sheet before the Owner #2's investment: Balance Sheet ABC Company December 31, 20x Current Year 20,000 85,000 60,000 165,000 Assets Cash Accounts Receivable Inventory Total Assets Accounts Payable Notes Payable 5,000 10,000 15,000 Total Liabilities 50,000 100,000 Common Stock Retained Earning Total Stockholders' Equity 165,000 Total Liabilities and Stockholders' Equity

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