Question

Selected balance sheet items are shown for the Microtech Company. Compute the missing amounts for each of the four years. What basic accounting equation did you apply in making your calculations? Year 1 Year 2 Year 3 Year 4 Current Assets $113,624 $85,124 Noncurrent assets 198,014 162,011 151,021 $220,111 $524,600 Total assets Current liabilities $56,142 $40,220 Noncurrent liabilities 30,222 170,000 60,100 Paid-in capital 214,155 13,785 $524,600 170,000 1,452 173,295 "Retained earnings (3,644) $288,456 2,350 $220,111 Total liabilites and owners' equity In the space below, please descripe the basic accounting equation you applied in making your calculations Year 1 Noncurent assets Year 1 Noncurrent liabilites Year 2 Current Assets Year 2 Total Assts Year 2 Noncurent liabilities Year 3 Total assets Year 3 Current liabilities Year 3 Total liabiltieis & owners equity Year 4 Current assets Year 4 Current liabilities

Answer 1

Year 1 Year 2 Year 3 Year 4 2 Current assets 113,624 $ 90,442 $ 85,124 $ 69,090 3 Noncurrent assets 410,976 $ 198,014 $ 162,011 $ 151,021 4 Total assets 524,600 $ 288,456 $ 247,135 $ 220,111 5 Current liabilities 56,142 $ 40,220 $ 15,583 $ 17,539 6 Noncurrent liabilities 240,518 $ 78,585 $ 60,100 $ 30,222 7 Paid in capital $ 214,155 $ 173,295 $ 170,000 $ 170,000 8 Retained earnings $ 13,785 $ (3,644) $ 1,452 $ 2,350 9 Total liabilities and owners equity $ 524,600 $ 288,456 $ 247,135 $ 220,111 10 11 Year 1 Non current assets Total assets - Current assets 12 Year 1 Non current liabilities Total liabilities and owners equity - Current liabilities - Owners equity 13 Year 2 Current assets Total assets - Non current assets 14 Year 2 Total assets Total assets = Total liabilities and owners equity 15 Year 2 Non current liabilities Total liabilities and owners equity - Current liabilities - Owners equity 16 Year 3 Total assets Current assets + Non current assets 17 Year 3 Current liabilities Total liabilities and owners equity - Non current liabilities - Owners equity 18 Year 3 Total liabilities and owners equity Total liabilities and owners equity = Total assets 19 Year 4 Current assets Total assets - Non current assets 20 Year 4 Current liabilities Total liabilities and owners equity - Non current liabilities - Owners equity

с Year 1 113624 =+B4-B2 524600 56142 =+B9-B5-B7-B8 214155 13785 524600 Year 2 =+C4-C3 198014 =+C9 40220 =+C9-C5-C7-C8 173295 -3644 288456 Year 3 85124 162011 =SUM(D2:D3) - +D9-SUM(D6:08) 60100 170000 1452 =+D4 Year 4 =+E4-E3 151021 220111 =+E9-SUM(E6:E8) 30222 170000 2350 220111 1 2 Current assets 3 Noncurrent assets 4 Total assets 5 Current liabilities 6 Noncurrent liabilities 7 Paid in capital 8 Retained earnings 9 Total liabilities and owners equity 10 11 Year 1 Non current assets 12 Year 1 Non current liabilities 13 Year 2 Current assets 14 Year 2 Total assets 15 Year 2 Non current liabilities 16 Year 3 Total assets 17 Year 3 Current liabilities 18 Year 3 Total liabilities and owners equity 19 Year 4 Current assets 20 Year 4 Current liabilities Total assets - Current assets Total liabilities and owners equity - Current liabilities - Owners equity Total assets - Non current assets Total assets = Total liabilities and owners equity Total liabilities and owners equity - Current liabilities - Owners equity Current assets + Non current assets Total liabilities and owners equity - Non current liabilities - Owners equity Total liabilities and owners equity = Total assets Total assets - Non current assets Total liabilities and owners equity - Non current liabilities - Owners equity

Please feel free to ask me if any more explanations are needed.

Thank you!!