Question

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

Assets =Liabilities + Owner’s Equit

y

(a) $90,000= $30,000 +

?

(b)

?

=

$45000 + $70,000

(c) $94,000 =

?

+ $55,000

2

-

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

(a) The liabilities of Weber Company are $120,000 and the owner’s equity is $232,000.

What is the amount

of Weber Company’s total assets?

(b) The total assets of Weber Company are $190,000 and its owner’s equity is $91,000.

What is the amount of its total

liabilities?

(c) The total assets of Weber Company are

$800,000 and its liabilities are equal to one

-

hal

f

of its total assets. What is the amount of Weber Company’s owner’s equity

?

3

-

At the beginning of the year, Gilles Company had total assets of $800,000 and t

otal

liabilities of $300,000. Answer the following questions.

(a) If total assets increased $150,000 during the year and total liabilities decreased $60,000, what

is the amount of owner’s equity at the end of the year?

(b) During the year, total liabilitie

s increased $100,000 and owner’s equity decreased $70,000.

What is the amount of total assets at the end of the year?

(c) If total assets decreased $80,000 and owner’s equity increased.

2

4

-

Use the expanded accounting equation to answer each of the followin

g questions.

(a)

The liabilities of Kafka Company are $90,000. Owner’s capital is $150,000; drawings are

$40,000; revenues, $450,000; and expenses, $320,000. What is the amount of K

Answer 1

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