130.
Accounting equation
(A.) During the current year, the assets of Duffy Stationery increased by $650,000 and the
liabilities decreased by $340,000. What was the change in owners’ equity during the year?
(B.) The owners’ equity of Graham Interiors appears on the balance sheet as $720,000 and
is equal to one-fourth of total assets. Compute the amount of total liabilities.
(C.) At the end of the year, the owners’ equity in Scott Mfg. amounted to $845,000. During
2014, the assets of the business increased by $515,000 and the liabilities increased by
$205,000. The owners’ equity at the beginning of 2014 was how much?
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131.
Effects of transactions on elements of the accounting equation
Some of the transactions carried out by Tudor Wholesale during the first month of the
company’s operations are listed below. You are to determine the effect of each transaction
on the total assets, the total liabilities, and the owners’ equity. Prepare your answer in
columnar form, identifying each transaction by letter and using the symbols (+) for
increase, (-) for decrease, and (NC) for no change. An answer is provided for the first
transaction to serve as an example.
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132.
Effects of transactions on elements of the accounting equation
Some of the transactions carried out by Tsang Company during the first month of the
company’s operations are listed below. You are to determine the dollar effect of each
transaction on the total assets, the total liabilities, and the owners’ equity of Tsang
Company. Use the symbols (+) for increase, (-) for decrease, and (NC) for no change. An
answer is provided for the first transaction to serve as an example.
133.
List the following accounts in the order that they would appear in a balance sheet.
Capital Stock
Equipment
Accounts Receivable
Retained Earnings
Revenue
Accounts Payable
Cash
Rent Expense
134.
Computation of assets, liabilities, and owners’ equity after a series of transactions
On April 30, 2014, the balance sheet of China Collectibles showed total assets of $700,000,
total liabilities of $400,000, and owners’ equity of $300,000. The following transactions
occurred in May of 2014:
(1) Capital stock was issued in exchange for $165,000 cash.
(2) The business purchased equipment for $360,000, paying $160,000 cash and issuing a
note payable for $200,000.
(3) The business paid $70,000 of its accounts payable.
(4) The business collected $54,000 of its accounts receivable.
Compute the following as of May 31, 2014:
(A.) Total assets $____________
(B.) Total liabilities $____________
(C.) Owners’ equity $____________
135.
Computation of assets, liabilities, and owners’ equity after a series of transactions
The December 31, 2014 balance sheet of Charles Realty reported total assets of $900,000,
total liabilities of $350,000, and owners’ equity of $550,000. The following transactions
occurred in January of 2014:
(1) The business purchased land for $250,000, paying $100,000 cash and issuing a note
payable for the balance.
(2) The business collected accounts receivable totaling $45,000.
(3) The business sold land costing $50,000 for $60,000 cash.
(4) The business paid $50,000 of the note payable.
Compute the following at January 31, 2014:
(A.) Total assets $___________
(B.) Total liabilities $___________
(C.) Owners’ equity $___________
136.
Preparation of balance sheet
Prepare the balance sheet as of December 31, 2014, for Gamma Company, from the
following list of items which are arranged in random order. You must compute the amount
for accounts payable to complete the balance sheet.
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137.
Preparation of balance sheet after a series of transactions
The balance sheet was as follows for Custom Ceramics on February 1, 2014:
