On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000. During the...

On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000. During the year, the company had cash revenue or income of P10,000, cash expenses of P8,000, paid 3,000 to its creditors, and its owner withdrew P1,000. What are the assets, liabilities, and owner’s equity at the end of the year?

Solutions

Expert Solution

Full solution is worked out below:

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

On January 1, Orange Crates had assets of P30,000 and owner’s equity of P20,000. During the...

With referring to the basic accounting equation: Assets = Liabilities + Owner’s Equity, determine the effect...

With referring to the basic accounting equation: Assets = Liabilities + Owner’s Equity, determine the effect of the following transactions to the equation. Oct 1 Commenced business with cash RM200,000, land RM50,000, and equipment RM35,000. 5 Purchased furniture of RM5,000 on account. 7 Purchased supplies for a month, RM500, cash. 10 Provided services to Hakimi RM1,700, on account. 11 Received cash, RM500, from services performed to Saadiah. 17 Received cash from Hakimi. 20 Paid creditor in full for furniture purchased...

On January 1, Kirk Corporation had total assets of $861,000. During the month, the following activities...

On January 1, Kirk Corporation had total assets of $861,000. During the month, the following activities occurred: Kirk Corporation acquired equipment costing $7,100, promising to pay cash for it in 60 days. Kirk Corporation purchased $3,610 of supplies for cash. Kirk Corporation sold land, which it had acquired 2 years ago. The land had cost $16,100 and it was sold for $16,100 cash. Kirk Corporation signed an agreement to rent additional storage space next month at a charge of $1,110...

For each transaction, indicate whether the balance of total assets, liabilities and owner’s equity (OE) increased,...

For each transaction, indicate whether the balance of total assets, liabilities and owner’s equity (OE) increased, decreased, or did not change. Transaction # Description Assets Liabilities Owner’s Equity 1 Paid salaries for current month. AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change 2 Purchased equipment on credit. AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change 3 Purchased furniture using cash. AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change 4 Additional investment into the business. AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change AnswerDecreaseIncreaseNo Change 5 Received immediate payment for services...

he accounting equation is assets = liabilities + owner’s equity. Please explain the relationship between economic...

he accounting equation is assets = liabilities + owner’s equity. Please explain the relationship between economic resources and claims to economic resources. Why must this equation always balance? What transactions increase or decrease owner’s equity? How does net income or loss affect owner’s equity? Please give an example of a transaction, applied to the accounting equation.

At the end of September 2021, total owner’s equity for Beaulieu Group Company was $7,840. During...

At the end of September 2021, total owner’s equity for Beaulieu Group Company was $7,840. During October, the following transactions occurred: 1. Provided services to a client and received $1,815 cash. 2. Paid $1,050 for October’s rent. 3. Purchased $540 of supplies on account. 4. Provided services to a client and billed the client $2,090. 5. Collected $865 from the client billed in transaction 4. 6. Received $8,240 cash from a client for services to be provided in November. 7....

On January 1, 2014 Primo Corporation had the following had the following equity accounts. Amount in...

On January 1, 2014 Primo Corporation had the following had the following equity accounts. Amount in OMR Share Capital – Ordinary 750,000 (OMR 10 par value, 75,000 shares issued and outstanding) Share Premium – Ordinary 200,000 Retained Earnings 540,000 During the year, the following transactions occurred. Jan. 15 Declared an OMR 1 cash dividend per share to shareholders of record on January 31, payable on February 15. Feb. 15 Paid the dividend declared in January. Apr. 15 Declared a 30%...

Apple Company purchased 42% of Orange Company's common stock for $418,000 on January 1, 2021. During...

Apple Company purchased 42% of Orange Company's common stock for $418,000 on January 1, 2021. During 2021, Orange Company reported a net income of $79,000 and paid dividends totaling $13,000. For 2022, Orange Company paid dividends totaling $21,000. On December 31, 2022, Apple Company sold three-fourths of its investment in Orange Company for $319,625 cash. Apple Company reported a loss on the sale equal to $12,460. What is the amount of net income earned by Orange Company in 2022?

Crofter Ltd had total assets of $950,000 and equity of $290,000 at the

Crofter Ltd had total assets of $950,000 and equity of $290,000 at the beginning of the year. At the end of the year, the company had total assets of $810,000. During the year, the company sold no new equity. Net income for the year was $140,000. At the end of the year, Crofter Ltd paid total dividends of $120,000.Required(i) Please calculate Crofter's growth rate using start-of-year equity.(ii) Please show how you get the same result if you base your calculation...

On January 1, ABC Company had $190,000 in Accounts Receivable and during the month had Credit...

On January 1, ABC Company had $190,000 in Accounts Receivable and during the month had Credit sales of $370,000 and Cash sales of $200,000. During January, ABC collected $310,000 on account and wrote off a $12,000 receivable. Also, during January, ABC had Sales Allowances of $9,000; Sales Discounts of $16,000; and Sales Returns of $17,500. ABC managed to collect $3,800 of a previously written off account during January. The balance in the Allowance for Uncollectible Accounts on January 1 was...

Subjects