Homework Answers
1.
| Cash Basis | |||||
| Assets/Resources | = | Claims Against Resources | |||
| Cash | = | Contributed Capital | + | Earned Capital | |
| $ 1,00,000 | = | $ 1,00,000 | + | $ - | $ - |
| = | + | ||||
-
| Accrual Basis | ||||||||
| Assets/Resources | = | Claims Against Resources | ||||||
| = | + | + | ||||||
| Cash | Inventory | = | Accounts Payable | + | Contributed Capital | + | Revenues | Expenses |
| $ 1,00,000 | $ - | = | $ - | $ 1,00,000 | $ - | $ - | ||
--
2.
| Cash Basis | ||||||
| Assets/Resources | = | Claims Against Resources | ||||
| Cash | = | Contributed Capital | + | Earned Capital | ||
| Cash | = | Contributed Capital | + | Revenues | Expenses | |
| Owner Contribution | $ 1,00,000 | = | $ 1,00,000 | + | $ - | $ - |
| Inventory Purchase | $ - | = | $ - | + | $ - | $ - |
| Sale of Inventory | $ 12,000 | = | $ - | + | $ 12,000 | $ - |
| Total | $ 1,12,000 | = | $ 1,00,000 | + | $ 12,000 | $ - |
-
| Accrual Basis | |||||||||
| Assets/Resources | = | Claims Against Resources | |||||||
| = | + | + | |||||||
| Cash | Inventory | = | Accounts Payable | + | Contributed Capital | + | Revenues | Expenses | |
| Owner Contribution | $ 1,00,000 | $ - | = | $ - | + | $ 1,00,000 | + | $ - | $ - |
| Inventory Purchase | $ - | $ 10,000 | = | $ 10,000 | + | $ - | + | $ - | $ - |
| Sale of Inventory | $ 12,000 | $ -8,000 | = | + | + | $ 12,000 | $ -8,000 | ||
| Total | $ 1,12,000 | $ 2,000 | = | $ 10,000 | + | $ 1,00,000 | + | $ 12,000 | $ -8,000 |
--
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o True
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