Question

+ The accounting equation for Bear Enterprises is as follows counting on the $240.000 $120 000 company now prepayment of 518 16000 for the next six months the h o w Liabetes A) 5240.000 Stockholdes Eau = $138.000 - S102 000 B) $278.000 = $138.000 - $138.000 C) $240.000 = $120.000 - $120.000 D) $258,000 - $138.000 - $120.000 8. The accounting equation for Woolsey Enterprises is as follows Stockholders Equity Assets 5720.000 300.000 $350.000 2016 2000 the company now purchases a truck on account for 550,000, the accounting equation will change to Assets Labetes Stockholders' Equity $780.000 = $360,000 $420,000 $780,000 $395.000 3384000 $780.000 - $420,000 $360,000 5720.000 - $380,000 - $350.000 to 9. Beginning and ending Cash account balances of Moonbeam, Inc. were $38.000 and $16.000. respectively cash received during the period was $74,000, what amount of cash was paid out during the penod?

Answer 1

7)	when y0u prepay rent then
	you debit prepaid rent (asset) and credit cash(asset)
	thus the net effect will be nil hence the equation will remain same
	answer)	option c
8)	Truck is an asset so truck will be debited with $60,000
	and purchased on account will increase liability by $60,000
	hence correct option is
	answer)	option c
9)	opening balance				38,000
	add reciepts				74,000
	total				112,000
	less:ending balance				-16,000
	Cash paid out				96,000	answer