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Jones Enterprises was started when it acquired $6,000 cash from creditors and $10,000 from owners.

The company immediately purchased land that cost $12,000.

A. Record the events under an accounting equation.

B. After all the events have been recorded, Jones's obligations to creditors represent what percent of total assets?

C. After all the events have been recorded, Jones stockholders' equity represents what percent of total assets?

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A. Recording the events under an accounting equation is as follows:

	Assets =	Liabilities +	Stockholders' Equity
Acquired $6,000 cash from creditors	$6,000	$6,000	-
Acquired $10,000 cash from owners	$10,000	-	$10,000
Purchased land worth $12,000	$12,000	-	-
	($12,000)	-	-
Total	$16,000	$6,000	$10,000

B. After all the events have been recorded, Jones's obligations to creditors in percent of total assets is computed as follows:

Obligations to creditors	$6,000
Divide by: Total assets	$16,000
Obligations to creditors to total assets ratio	37.50%

C. After all the events have been recorded, Jones stockholders' equity represents in percentage of total assets is computed as follows:

Stockholders' Equity	$10,000
Divide by: Total assets	$16,000
Stockholders' Equity to total assets ratio	62.50%

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