Question

1. Use the accounting equation to compute the missing financial statement amounts. 1 2 3 $ $ $ 90,000 = 117,500 = 115,000 = $ $ $ 42,500 + 32,500 + 35,000 + $ $ $ 47,500 85,000 80,000 aces 2. Use the expanded accounting equation to compute the missing financial statement amounts. DIV Company 1 2 $ $ Assets - 70,000 - 108,500 - Liabilities $ 23,500 $ 39,500 + + Common Stock $ 35,000 $ 69,000 Revenues - Expenses - $ 15,500 $ 39,000 - $ 25,500 < Prev 2 of 12 Next > MacBook Pro

Answer 1

Part-1)

1) Assets = Liabilities + Equity

We have Assets = 90,000; Liabilities = ?; Equity = 47,500

Putting values in formula:

90,000 = Liabilities + 47,500

Liabilities = 42,500

2) We have Assets = ?; Liabilities = 32,500; Equity = 85,000

Putting values in formula:

Assets = 32,500 + 85,000 = 117,500

3) We have Assets = 115,000; Liabilities = 35,000; Equity = ?

Putting values in formula:

115,000 = 35,000 + Equity

Equity = 80,000

　

Part-2)

Company	Assets	=	Liabilities	+	Common stock	-	Dividends	+	Revenue	-	Expenses
1	70,000	=	23,500	+	35,000	-	0	+	27,000	-	15,500
2	108,500	=	39,500	+	59,000	-	3,500	+	39,000	-	25,500

　

1) Assets = Liabilities + Common stock - Dividends + Revenues - Expenses

70,000 = 23,500 + 35,000 - 0 + Revenues - 15,500

Revenues = 27,000

2) Assets = Liabilities + Common stock - Dividends + Revenues - Expenses

108,500 = 39,500 + 59,000 - Dividends + 39,000 - 25,500

Dividends = 3,500