Question

Oriole Limited reports the following statement of financial position accounts, in alphabetical order:

Accounts payable		$13,850
Accounts receivable		13,900
Bank loan payable		32,600
Cash		9,350
Common shares		20,000
Equipment		35,500
Income tax payable		1,200
Intangible assets		5,000
Interest payable		300
Inventory		10,000
Prepaid insurance		1,000
Retained earnings		30,200
Salaries payable		800
Supplies		2,500
Unearned revenue		1,200
Vehicles		22,900

A. Classify each account as an Asset, Liability, or Shareholders’ Equity item.

Accounts payable

$13,850

Accounts receivable		13,900
Bank loan payable		32,600

Cash

9,350

Common shares

20,000

Equipment		35,500
Income tax payable		1,200

Intangible assets

5,000

Interest payable

300

Inventory

10,000

Prepaid insurance

1,000

Retained earnings

30,200

Salaries payable

800

Supplies

2,500

Unearned revenue

1,200

Vehicles

22,900

B. Calculate total assets, total liabilities, and total shareholders’ equity.

Total assets		$ .
Total liabilities		$ .
Total shareholders’ equity		$

Prepare Oriole’s accounting equation. choose the correct answer.

Equation: (Assets, liabilities, shareholders equity) =

(Assets, liabilities, shareholders equity)+

(Assets, liabilities, shareholders equity)

which means..  $_____=$______+$______

Oriole’s retained earnings were $15,000 at the beginning of the year. The company reported revenues of $298,700, expenses of $273,500, and dividends declared of $10,000 during the year. Prepare a calculation that proves how retained earnings of $30,200 at the end of the year were determined.

Beginning balance in Retained Earnings		$
Revenues
Expenses
Dividends declared
Ending balance in Retained Earnings

Answer 1

a)

Accounts payable	13,850.00	Liability
Accounts receivable	13,900.00	Asset
Bank loan payable	32,600.00	Liability
Cash	9,350.00	Asset
Common shares	20,000.00	Shareholders’ Equity
Equipment	35,500.00	Asset
Income tax payable	1,200.00	Liability
Intangible assets	5,000.00	Asset
Interest payable	300.00	Liability
Inventory	10,000.00	Asset
Prepaid insurance	1,000.00	Asset
Retained earnings	30,200.00	Shareholders’ Equity
Salaries payable	800.00	Liability
Supplies	2,500.00	Asset
Unearned revenue	1,200.00	Liability
Vehicles	22,900.00	Asset

B)

Accounts receivable	13,900.00
Cash	9,350.00
Equipment	35,500.00
Intangible assets	5,000.00
Inventory	10,000.00
Prepaid insurance	1,000.00
Supplies	2,500.00
Vehicles	22,900.00
Total Assets	100,150.00

Accounts payable	13,850.00
Bank loan payable	32,600.00
Income tax payable	1,200.00
Interest payable	300.00
Salaries payable	800.00
Unearned revenue	1,200.00
Total Liability	49,950.00

Common shares	20,000.00
Retained earnings	30,200.00
Total Stockholders Equity	50,200.00

C)Assets = Liabilities + Stockholders Equity

=100,150 = 49,950 + 50,200

Beginning balance in Retained Earnings	15,000.00
Revenues	298,700.00
Expenses	-273,500.00
Dividends declared	- 10,000.00
Ending balance in Retained Earnings	30,200.00