Question

scc

EX 1-7 Accounting equation Show We Obj. 3, 4 Annie Rasmussen is the owner and operator of Go4, a motivational consulting business. At the end of its accounting period. December 31, 2018, Go44 has assets of $720,000 and liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts: a. Annie Rasmussen, capital, as of December 31, 2018, b. Annte Rasmussen, capital, as of December 31, 2019, assuming that assets increased by $96.500 and liabilities increased by $30,000 during 2019. A c. Annie Rasmussen, capital, as of December 31, 2019. assuming that assets decreased by $168.000 and liabilities increased by $15.000 during 2019 d. Annie Rasmussen, capital as of December 31, 2019, assuming that assets increased by $175.000 and liabilities decreased by $18,000 during 2019, Net Income (or net loss) during 2019. assuming that as of December 31, 2019, assets were S8830.000 abilities were $220,000, and there were no additional investments or withdrawals 4 80 Bad 13 F2 9 # 3 A LA % 5 6 7 2

Answer 1

3.

	Assets	Liabilities	Capital	Net Profit
a	$        720,000	$        180,000	$        540,000
b	$        816,500	$        210,000	$        606,500
c	$        552,000	$        195,000	$        357,000
d	$        895,000	$        162,000	$        733,000
e	$        880,000	$        220,000	$        540,000	$    120,000

4.

2. Assets (Accounts Receivable) increase by $13,750 , Revenue increases by $13,750  

3. Assets (Cash) decrease by $2,500 Liabilities (Accounts Payable) decrease by $2,500

4. Assets (Accounts Receivable) decrease by $9000 , Assets (Cash) increase by $9000

5. Assets (Cash) decrease by $1000 , Owner's Equity decrease by $1000