
TheAccounting equation of the business is based on the double entry aspects the accounting entries. The books always complete the double entry aspects of every debit must have a credit.
Therefore, based on this, there always exist an Accounting equation which states that the sum of all the assets is equal to sum of all outside liabilities (referred as Total liabilities) and
The above equation always holds good irrespective of number of transactions handled by the business. Therefore, we can conclude that whenever there is one item (i.e. assets or Total liabilities or Owner’s equity) is missing for any reason. The same can be computed by applying the Accounting equation.
Requirement1:
TheNet income of the business Peaceful River Spa.
Requirement2:
The Change in Owner’s equity during the period need to be computed.

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Chapter 1 Solutions
Horngren's Accounting
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