Use the accounting equation to answer the following: 1. The assets of Luzon Petroleum are P40,000,000, and the owner's equity is P15,500,000. What is the amount of the liabilities? 2. The liabilities and owner's equity of Visayas Tours are P7,200,000 and P7,950,000, respectively. What is the amount of assets? 3. The liabilities of Mindanao Farms equal one-third of the total assets, and owner's equity is P16,000,000. What is the amount of liabilities? 4. At the beginning of the year, XYZ Consulting assets were P27,500,000, and its owner's equity was P15,000,000. During the year, assets increased P7,500,000 and liabilities decreased P2,250,000. What is the owner's equity at year end?

Use the accounting equation to answer the following: 1. The assets of Luzon Petroleum are P40,000,000, and the owner's equity is P15,500,000. What is the amount of the liabilities? 2. The liabilities and owner's equity of Visayas Tours are P7,200,000 and P7,950,000, respectively. What is the amount of assets? 3. The liabilities of Mindanao Farms equal one-third of the total assets, and owner's equity is P16,000,000. What is the amount of liabilities? 4. At the beginning of the year, XYZ Consulting assets were P27,500,000, and its owner's equity was P15,000,000. During the year, assets increased P7,500,000 and liabilities decreased P2,250,000. What is the owner's equity at year end?

Name: Problem 1-1Use the accounting equation to answer the following:1. The
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Description: Problem 1-1Use the accounting equation to answer the following:1. The assets of Luzon Petroleum are P40,000,000, and the owner's equity is P15,500,000.What is the amount of the liabilities?2. The liabilities and owner's equity of Visayas Tours are P

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Problem 1-1
Use the accounting equation to answer the following:
1. The assets of Luzon Petroleum are P40,000,000, and the owner's equity is P15,500,000.
What is the amount of the liabilities?
2. The liabilities and owner's equity of Visayas Tours are P7,200,000 and P7,950,000,
respectively. What is the amount of assets?
3. The liabilities of Mindanao Farms equal one-third of the total assets, and owner's equity is
P16,000,000. What is the amount of liabilities?
4. At the beginning of the year, XYZ Consulting assets were P27,500,000, and its owner's
equity was P15,000,000. During the year, assets increased P7,500,000 and liabilities
decreased P2,250,000. What is the owner's equity at year end?

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