Question

1. Determine the missing amount designated with an “X” for each of the following:

Assets	Liabilities	Owner’s Equity
(a) $78,500	$37,600	X
(b) X	53,280	$145,000
(c) 49,500	X	34,000

2. The accountant for Scott Industries prepared the following list of accounting equation element balances from the company’s records for the year ended December 31: Fees earned $165,000 Cash $30,000 Accounts receivable 14,000 Selling expenses 44,000 Equipment 64,000 Scott, capital 27,000 Accounts payable 12,000 Interest income 3,000 Salaries and wages expense 40,000 Prepaid rent 2,000 Income taxes payable 5,000 Income taxes expense 18,000 Notes payable 20,000 Rent expense 20,000 ​

Determine the total assets at the end of the current year for Scott Industries. .

3.. From the following list of items taken from Lamar’s accounting records, identify those that would appear on the income statement.

(a)	Rent expense
(b)	Land
(c)	Capital
(d)	Fees earned
(e)	Withdrawal
(f)	Wages expense
(g)	Investment

4. Match the following items to the financial statement where they can be found. (Hint: Some of the items can be found on more than one financial statement.)

A. Balance sheet
B. Income statement
C. Statement of cash flows
D. Statement of owner’s equity

	Item
1.	Withdrawals
2.	Revenues
3.	Supplies
4.	Land
5.	Accounts payable
6.	Accounts receivable
7.	Operating activities
8.	Wages expense
9.	Net income
10.	Cash

5. Using the following accounting equation elements and their balances, prepare, in good format a balance sheet in report form for Bright Futures Company for the month ended August 31.

Telephone expense	$ 1,150
Cash	3,000
Accounts payable	1,540
Jason Bright, drawing	800
Fees earned	15,700
Rent expense	1,400
Supplies	140
Accounts receivable	1,500
Computer equipment	20,000
Jason Bright, capital (August 1)	14,320
Wages expense	4,800
Utilities expense	750
Notes payable	2,400
Office expense	420

Answer 1

Dear student, only one question is allowed at a time. I am answering the first question

1)

As per Accounting Equation,

Assets = Liabilities + Owner’s Equity

So, using the above equation we have the following

a)

$78,500 = $37,600 + Owner’s Equity

So, Owner’s Equity = $78,500 - $37,600

= $40,900

b)

Assets = $53,280 + $145,000

= $ 198,280

c)

$49,500 = Liabilities + $34,000

So, Liabilities = $49,500 - $34,000

= $ 15,500