Question

EX 1-6 Accounting equation A. $1,895,000 Determine the missing amount for each of the following AssetsLlabilities + Stockholders' Equity A. B. $776,500$588,800 C. $14,750,000-$4,455,000 + 5550,000 $1,345,000 SHOW ME N EX 1-7 Accounting equation Obj. 3, 4 B. $4,120,000 Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 2017, Inspirational has assets of $5,250,000 and liabilities of $1,600,000. Using the accounting equation and considering each case independently, determine the following amounts: A. IE OW B. Stockholders' equity as of October 31, 2018, assuming that assets increased by $800,000 C. Stockholders' equity as of October 31, 2018, assuming that assets decreased by $600,000 D. Stockholders' equity as of October 31, 2018, assuming that assets increased by $440,000 E. Net income (or net lkoss) during 2018, assuming that as of October 31, 2018, assets were $6,1-40,000, Stockholders' equity as of October 31, 2017 and liabilities increased by $330,000 during 2018. and liabilities increased by $140,000 during 2018. and liabilities decreased by $90,000 during 2018. liabilities were $1,950,000, and no additional common stock was issued or dividends pai. EX 1-8 Asset, liability, and stockholders' equity items Indicate whether each of the following is identified with (1) an asset, (2) a liability, or 3) stockholders' equity A. accounts payable B. cash Obj. 3 D. land E. supplies F wages expense fees earned Obj. 4 EX 1.9 Effect of transactions on accounting equation What is the effect of each of the following transactions on the three elements (assets, liabilities, and stockholders' equity) of the accounting equation? A. Invested cash in business B. Paid for utilities used in the business C. Purchased supplies for cash D. Purchased supplies on account E. Received cash for services performed. EX 1-10 Effect of transactions on accounting equation Obj. 4 A. (1) increase A. A vacant lot acquired for $115,000 is sold for $298,000 in cash. What is the effect of the sale on the total amount of the seller's (1) assets, (2) liabilities, and (3) stockholders' equity? Assume that the seller owes $80,000 on a loan for the land. After receiving the $298,000 cash in (A), the seller pays the $80,000 owed. What is the effect of the payment on the $183,000 B. total amount of the seller's () assets, (2) liabilities, and (3) stockholders' equity? DW ME RONC.Is it true that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders' Equity) of the accounting equation? Explain. Obj. 4 EX 1-11 Effect of transactions on stockholders' equity Indicate whether each of the following types of transactions will either (A) increase stockhold- ers' equity or (B) decrease stockholders' equity 1 expenses 2. issuing common stock in exchange for cash 3. dividends 4. revenues

Answer 1

1-6) A=$ 18,95,000(see note 1)

B=$ 1,87,700(see note 2)

C=$ 10,295,000(see note 3)

Note 1:

Assets-Liabilities= Stockholder’s Equity

Assets=Liabilities+ Stockholder’s Equity

Assets=$550,000+$1345,000=$ 18,95,000

Note 2:

Assets- Stockholder’s Equity = Liabilities

Liabilities= Assets-Stockholder’s Equitys

Liabilities= $ 776500-$ 588800=1,87,700

Note3:

Assets-Liabilities= Stockholder’s Equity

Stockholder’s Equity=14750,000-4455000=10,295,000