Please use the balance sheet below to answer the following six (6) questions: Scenario #1...
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Accounting
Please use the balance sheet below to answer the following six (6) questions: Scenario #1 ABC is a small business that is owned by one 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, 20xx Current Year Assets Current Assets Cash Accounts Receivable Inventory 20,000 85,000 60,000 165,000 Total Assets
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