OVERNIGHT AUTO SERVIE BALANCE SHEET JANUARY 23, 2009

Cash………. $22,000 Liabilities:
Land………………….. 52,000 Notes Payable ………………………… $30,000
Building………………. 36,000 Accounts Payable……………………. 13,800
Tools and Equipment..13,800 Total liabilities…………………… $43,800
Owners’ equity:
Capital Stock……………… 80,000
Total……………………..$123800 Total………………………………… $123,800

Sale of an Asset After taking delivery of the new tools and equipment, Overnight found that it had purchased more than it needed. Ace Towing, a neighboring business, offered to buy the excess items. On January 24, Overnight sold some of its new tools to Ace for $1,800 a price equal to Overnight’s cost. Ace made no down payment but agreed to pay the amount due within 45 days. This transaction reduced Overnight’s tools and equipment by $1,800 and created a new asset