Question

Drag the account types to form the expanded accounting equation. Begin the equity section with capital. Then, identify whether the item increases, '+', or decreases, '', equity. Owner, Capital: Cash Owner, Withdrawals Accounts Receivable Accounts Payable Revenues Expenses Unearned Revenues Liabilities : Assets Drag card here Drag card here Drag card here Drag card here Drag card here Drag card here

Answer 1

1) The accounting Equation is as follows.

Assets = Liabilities + Owners Equity + Revenues - Expenses - Owner's Withdrawal's

2)

18,000 = 48,000 + 8,000 - 18,000 + 4,000 - 24,000

96,000 = 29,000 + 35,000 - 12,000 + 47,000 - 3,000

30,000 = 16,000 + 16,000 - 17,000 + 31,000 - 16,000

3) Truck - Assets

Interest Payable - Liabilities

Owner Withdrawals - Owners withdrawals

Repairs and Maintenance Expense - Expense

Owners Capital - Owners Equity

Interest Revenue - Revenues

4)

Office Furniture		Owner Capitals		Owner Withdrawal
+	-		-	+		+	-
Debit	Credit		Debit	Credit		Debit	Credit
Normal Balance				Normal Balance		Normal Balance
Supplies Expense		Accounts Payable		Service Revenue
+	-
Debit	Credit		Debit	Credit		Debit	Credit
			-	+		-	+
Normal Balance				Normal Balance			Normal Balance

5)

1) Beginning Equity = Beginning Assets - Beginning Liabilities

= $ 25,000 - $15,000

Beginning Equity = $10,000

2)

Ending Equity = Ending Assets - Ending Liabilities

= $ 62,000 - $25,000

Ending Equity = $37,000

3) Net Income ( Loss) = Beg Equity + Owner's Capital - Owner's Withdrawal - End Equity

= $10,000 + $7,900 - $36,400 - $37,000

Net Income ( Loss) = ($55,500)

4) Owner Capital =  Net Income + Owner's Withdrawal + End Equity - Beg Equity

   = $3,300 + $6,800 + $37,000 - $10,000

Owner Capital = $37,100

5) Owner Withdrawals = Beg Equity +Owners Capital - Net Income - End Equity

= $10,000 + $16,800 + $17,100 - $37,000

Owner Withdrawals = $6,900

6)

Net Income ( Loss) = Beg Equity + Owner's Capital - Owner's Withdrawal - End Equity

= $10,000 + $43,100 - $1,400 - $37,000

Net Income ( Loss) = $14,700