Ex. 241
Compute the missing amount in each category of the accounting equation.
Assets Liabilities Equity
(a)$279,000$ ? $143,000
(b)$223,000$ 79,000$ ?
(c)$ ? $173,000$325,000
From the following list of selected accounts taken from the records of McDreamy Homeopathic Center, identify those that would appear on the statement of financial position.
a.Share Capital-Ordinaryf.Accounts Payable
b.Service Revenueg.Cash
c.Landh.Rent Expense
d.Salaries and Wages Expensei.Supplies
e.Notes Payablej.Utilities Expense
Selected transactions for Tall Timber Tree Service are listed below.
1. Made cash investment to start the business.
2. Paid for monthly advertising.
3.
Purchased supplies on account.
4.
Billed customers for services performed.
5.
Paid cash dividends.
6.
Received cash from customers billed in (4).
7.
Incurred utilities expense on account.
8.
Purchased additional supplies for cash.
9.
Received cash from customers when service was performed.
Instructions
List the numbers of the above transactions and describe the effect of each transaction on assets,
liabilities, and owner’s equity. For example, the first answer is: (1) Increase in assets and increase in equity.
1. Increase in assets and increase in equity.
2. Decrease in assets and decrease in equity.
3. Increase in assets and increase in liabilities.
4. Increase in assets and increase in equity.
5. Decrease in assets and decrease in equity.
6. Increase in assets and decrease in assets.
7. Increase in liabilities and decrease in equity.
8. Increase in assets and decrease in assets.
9. Increase in assets and increase in equity.