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Accounting Equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Annie Rasmussen, capital, as of December 31, 2018. $ b. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96,500 and liabilities increased by $30,000 during 2019. $ c. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019. $ d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019. $ e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals. $

Accounting Equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Annie Rasmussen, capital, as of December 31, 2018. $ b. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96,500 and liabilities increased by $30,000 during 2019. $ c. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019. $ d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019. $ e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals. $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Accounting Equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Annie Rasmussen, capital, as of December 31, 2018. $ b. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96,500 and liabilities increased by $30,000 during 2019. $ c. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019. $ d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019. $ e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals. $

EX 1-5 Accounting equation The total assets and total liabilities (in millions) of Dollar Tree Inc. and Target Corporation follow: OBJ. 3 Dollar Tree Target Corporation $41,404 Assets $3,567 Liabilities 1,782 27,407 Determine the owners' equity of each company. EX 1-6 Accounting equation Determine the missing amount for each of the following: OBJ. 3 Assets + Owner's Equity Liabilities a. $556,000 + $3,374,000 b. $6,111,200 X $5,725,000 C. $2,150,000 = $812,500 X EX 1-7 Accounting equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts: овJ. 3, 4 a. Annie Rasmussen, capital, as of December 31, 2018. b. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96,500 and liabilities increased by $30,000 during 2019. c. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019. d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019. e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals.
Transcribed Image Text:EX 1-5 Accounting equation The total assets and total liabilities (in millions) of Dollar Tree Inc. and Target Corporation follow: OBJ. 3 Dollar Tree Target Corporation $41,404 Assets $3,567 Liabilities 1,782 27,407 Determine the owners' equity of each company. EX 1-6 Accounting equation Determine the missing amount for each of the following: OBJ. 3 Assets + Owner's Equity Liabilities a. $556,000 + $3,374,000 b. $6,111,200 X $5,725,000 C. $2,150,000 = $812,500 X EX 1-7 Accounting equation Annie Rasmussen is the owner and operator of Go44, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts: овJ. 3, 4 a. Annie Rasmussen, capital, as of December 31, 2018. b. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96,500 and liabilities increased by $30,000 during 2019. c. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2019. d. Annie Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2019. e. Net income (or net loss) during 2019, assuming that as of December 31, 2019, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals.
PR 1-1A Transactions OBJ. 4 v Cash bal. at end of June: $21,020 On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: a. Opened a business bank account with a deposit of $30,000 from personal funds. Show Me How b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000. d. Paid rent on office and equipment for the month, $4,500. e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800. g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. j. Withdrew cash for personal use, $7,500. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + Owner's Equity Accounts Accounts Chad Wilson, Chad Wilson, Fees Rent Salaries Supplies Auto Misc. Cash + Receivable + Supplies = Payable + Capital - Drawing + Earned - Expense - Expense - Expense - Expense - Expense 2. Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreased owner's equity. 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?
Transcribed Image Text:PR 1-1A Transactions OBJ. 4 v Cash bal. at end of June: $21,020 On June 1 of the current year, Chad Wilson established a business to manage rental property. He completed the following transactions during June: a. Opened a business bank account with a deposit of $30,000 from personal funds. Show Me How b. Purchased office supplies on account, $1,800. c. Received cash from fees earned for managing rental property, $10,000. d. Paid rent on office and equipment for the month, $4,500. e. Paid creditors on account, $1,250. f. Billed customers for fees earned for managing rental property, $16,800. g. Paid automobile expenses (including rental charges) for the month, $750, and miscel- laneous expenses, $980. h. Paid office salaries, $4,000. i. Determined that the cost of supplies on hand was $680; therefore, the cost of supplies used was $1,120. j. Withdrew cash for personal use, $7,500. Instructions 1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings: Assets = Liabilities + Owner's Equity Accounts Accounts Chad Wilson, Chad Wilson, Fees Rent Salaries Supplies Auto Misc. Cash + Receivable + Supplies = Payable + Capital - Drawing + Earned - Expense - Expense - Expense - Expense - Expense 2. Briefly explain why the owner's investment and revenues increased owner's equity, while withdrawals and expenses decreased owner's equity. 3. Determine the net income for June. 4. How much did June's transactions increase or decrease Chad Wilson's capital?
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