www.downloadslide.net36 1 Accounting in Action(c) The total assets of Shumway Company Ltd. are £600,000 and its liabilities are equal toone half of its total assets. What is the amount of Shumway Company Ltd.'s equity?BE1-3 At the beginning of the year, Gonzales Company SLU had total assets of €870,000and total liabilities of €500,000. Answer the following questions.(a) If total assets increased €l150,000 during the year and total liabilities decreased€80,000, what is the amount of equity at the end of the year?(b) During the year, total liabilities increased €100,000 and equity decreased €55,000.What is the amount of total assets at the end of the year?Use basic accountingeguationcob(LO 6)r uhatIS e amount of total liabiliues at the end of the ycar?BE1-4 Use the accounting equation to answer each of the following questions.(a) The liabilities of Alli Company Ltd. are £90,000. Share capital-ordinary is £150,000;dividends are £40,000; revenues, £450,000; and expenses, £320,000. What is theamount of Alli Company Ltd.'s total assets?(b) The total assets of Planke Company Ltd. are £57,000. Share capital-ordinary is£23,000; dividends are £7,000; revenues, £50,000; and expenses, £35,000. What is theamount of the company's total liabilities?(c) The total assets of Thao Co. Ltd. are £600,000 and its liabilities are equal to two-thirdsof its total assets. What is the amount of Thao Co. Ltd.'s equity?Solve accountin uation.(LO 6)BE1-5 Indicate whether each ofaor part ofIdentify assets, liabilities,and equity.(LO 6)(a) Accounts receivable.(b) Salaries and wages payable.(c) Equipment.(d) Supplies.(e) Share capital-ordinary() Notes payable.BE1-6 Presented below are three business transactions. On a sheet of paper, list the letters(a), (b), and (c) with columns for assets, liabilities, and equity. For each column, indicatewhether the transactions increased (+), decreased (-), or had no effect (NE) on assets,liabilities, and equity.(a) Purchased supplies on account.(b) Received cash for performing a service.(c) Paid expenses in cash.Determine effect of transac-tions on basic accountingequation.(LO 7)BE1-7 Follow the same format as BE1-6 above. Determine the effect on assets, liabilities,and equity of the following three transactions.(a) Sharcholders invested cash in the business for ordinary shares.(b) Paid a cash dividend.(c) Received cash from a customer who had previously been billed for servicesperformed.Determine effecet oftransactions on accountingequation.(LO 7)BE1-8 Classify each of the following items as dividends (D), revenue (R), or expense (E).Classify items affectingequity.(a) Advertising expense.(b) Service revenue.(c) Insurance expense.(d) Salaries and wages expense.(e) Dividends.() Rent revenue.(g) Utilities expense.(LO 6)Determine effect oftransactions on equity.BE1-9 Presented below are three transactions. Mark each transaction as affecting sharecapital-ordinary (SC), dividends (D), revenue (R), expense (E), or not affecting equity (NE).(LO 6)(a) Received cash for services performed.(b) Paid cash to purchase equipment.(c) Paid employee salaries.Prepare a statement offumancial position.BE1-10 In alphabetical order below are statement of financial position items for GrandeCompany Ltd. at December 31, 2017. Kit Grande is the owner of Grande Company Ltd.Prepare a statement of financial position, following the format of Illustration 1-11.(LO 8)Accounts payableAccounts receivableCashShare capital-ordinary£85,000£72,500£44,000£31,500

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BE1-4 Use the accounting equation to answer each of the following questions. (a) The liabilities of Alli Company Ltd. are £90,000. Share capital-ordinary is £150,000%3; dividends are £40,000; revenues, £450,000; and expenses, £320,000. What is the amount of Alli Company Ltd.'s total assets? (b) The total assets of Planke Company Ltd. are £57,000. Share capital-ordinary is £23,000; dividends are £7,000; revenues, £50,000; and expenses, £35,000. What is the amount of the company's total liabilities? (c) The total assets of Thao Co. Ltd. are £600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Thao Co. Ltd.'s equity?

BE1-4 Use the accounting equation to answer each of the following questions. (a) The liabilities of Alli Company Ltd. are £90,000. Share capital-ordinary is £150,000%3; dividends are £40,000; revenues, £450,000; and expenses, £320,000. What is the amount of Alli Company Ltd.'s total assets? (b) The total assets of Planke Company Ltd. are £57,000. Share capital-ordinary is £23,000; dividends are £7,000; revenues, £50,000; and expenses, £35,000. What is the amount of the company's total liabilities? (c) The total assets of Thao Co. Ltd. are £600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Thao Co. Ltd.'s equity?

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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