1. Think Break #12 Fill in the empty entries in the balance sheet How would the balance sheet change if you bought $100,000 of land by taking $40,000 from your savings and borrowing $60,000 from a bank AssetsLiabilities Current Assets$400,000Current Liabilities$150,000 Non-Current Assets?Non-Current Liabilities$350,000 Owner Equity? Total Assets$1,000,000Total Liability & Equity$1,000,000

2. Think Break #12 Answer Current Assets + non-Current Assets = Total Assets $400,000 + non-Current Assets = $1,000,000: $600,000 Liabilities + Equity = Total Liability & Equity $150,000 + $350,000 + Equity = $1,000,000: $500,000 AssetsLiabilities Current Assets$400,000Current Liabilities$150,000 Non-Current Assets$600,000Non-Current Liabilities$350,000 Owner Equity$500,000 Total Assets$1,000,000Total Liability & Equity$1,000,000

3. Think Break #12 Answer $40,000 spent is decrease of current assets $100,000 land purchase is non-current asset $60,000 loan is a non-current liability (actually would be mix of current an non-current liabilities) Farm assets increase in value by $60,000 (influx of borrowed money), but your equity does not change AssetsLiabilities Current Assets$360,000Current Liabilities$150,000 Non-Current Assets$700,000Non-Current Liabilities$410,000 Owner Equity$500,000 Total Assets$1,060,000Total Liability & Equity$1,060,000