Question

Read, Study Practice Assignment Grabook ORION Dw ableTextbook ament > Open Assignment FULL SCREEN F EVER E K NEXT IGNENE RES dule 1 Brief Exercise 1-04 Use the expanded on tow er each of the following questions is $150.000 d e 0.000 0.000, and expen , 510.000 What is the amount of Platt (a) The late of Pat Company are $90,000. Owe Company's totale D en 10 DEEL Telerite 100 be DELO E lu (b) The total assets of Serra Company are $57.000. Ow a is 335,000 drawings are $7,000 revenue, 552.000, exp . 1.000 W i th the Eerse 101 Exercise 105 Eersel 10 (c) The total of th e S on and its are al to two thirds of total assets What is the amount of Birch Co owner's ty? betala Owney S Click if you would like to show Work for this question Open Show Work

Answer 1

(a) we know that,

Total Assets = Total liabilities + Owners capital + Net income - Drawing

= $90,000 + $150,000 + $110,000 - $40,000

= $310,000

Where,

Net income = Total revenue - Total expense

= $450,000 - $340,000

= $110,000

(b) Total assets = Total liabilities + Owners capital + Net income - Drawing

$57,000 = Total liabilities + $35,000 + $17,000 - $7,000

Total liabilities = $57,000 - $35,000 - $17,000 + $7,000

= $12,000

Where,

Net income = Total revenue - Total expense

= $52,000 - $35,000

= $17,000

(c) Total assets = Total liabilities + Owners equity

$660,000 = $440,000 - Owners equity

Owners equity = $660,000 - $440,000

= $220,000

Where,

Total liabilities = $660,000 * 2/3

= $440,000