Question

1. Presented below is the basic accounting equation. Determine the missing amounts. Assets Liabilities + Owner's Equity (a) $90,000 $50,000 (b) ? $44,000 $70,000 (c) $94,000 $53,000

Answer 1

1). Presented below is the basic accounting equation. Determine the missing amounts.

•{solutions} --

(a).

$90,000 – $50,000 = $40,000 (Owner’s Equity).

(b).

$44,000 + $70,000 = $114,000 (Assets).

(c).

$94,000 – $53,000 = $41,000 (Liabilities).

2). Given the accounting equation, answer each of the following questions.

•{Solutions}--

(a).

$120,000 + $232,000 = $352,000 (Total assets).

(b).

$190,000 – $91,000 = $99,000 (Total liabilities).

(c) .

$800,000 – 0.5($800,000) = $400,000 (Owner’s equity).

3). At the beginning of the year, Gilles Company had total assets of $800,000 and total and total liabilities of $300,000. answer the following questions.

•{solution }--

(a) ($800,000 + $150,000) – ($300,000 – $60,000) = $710,000 (Owner’s equity).

(b) ($300,000 + $100,000) + ($800,000 – $300,000 – $70,000) = $830,000 (Assets).

(c) ($800,000 – $80,000) – ($800,000 – $300,000 + $120,000) = $100,000 (Liabilities).

4}• Indicate whether each of the following items is an asset (A), liability (L), or part of owner equity (OE).

a. Account receivable = (A) asset

b.salaries and wages payable =(L) liability

c. Equipment= (A) asset

d. Supplies = ( A) asset

e. Owner's capital =(OE) owner equity

f. Notes payable =( L) liability.

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