Connect - another Financial Accounting, Chapter 1

1.

a. Total assets of Charter Company equal $770,000 and its equity is $455,000. What is the amount of its liabilities?

b. Total assets of Martin Marine equal $570,000 and its liabilities and equity amounts are equal to each other. What is the amount of its liabilities? What is the amount of its equity?

Assets = Liabilities + Equity a. $770,000 = $315,000selected answer correct + $455,000 b. $570,000 = $285,000selected answer correct + $285,000selected answer correct ----------------------------------------------------------------------------------- 2. 1. Use the accounting equation to compute the missing financial statement amounts. Company Assets = Liabilities + Equity 1 $86,000 = $40,500selected answer correct + $45,500 2 $111,500selected answer correct = $30,500 + $81,000 3 $107,000 = $31,000 + $76,000selected answer correct 2. Use the expanded accounting equation to compute the missing financial statement amounts. Company Assets = Liabilities + Common Stock − Dividends + Revenues − Expenses 1 $62,000 = $21,500 + $31,000 − $0 + $23,000selected answer correct − $13,500 2 $100,900 = $37,500 + $55,000 − $3,100selected answer correct + $35,000 − $23,500 ----------------------------------------------------------------------------------- 3. The following transactions were completed by the company. The company completed consulting work for a client and immediately collected $5,600 cash earned. The company completed commission work for a client and sent a bill for $4,100 to be received within 30 days. The company paid an assistant $1,450 cash as wages for the period. The company collected $2,050 cash as a partial payment for the amount owed by the client in transaction b. The company paid $720 cash for this period's cleaning services. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets = Liabilities + Equity Cash + Accounts Receivable = Accounts Payable + Common Stock − Dividends + Revenue − Expenses a. $5,600selected answer correct + not attempted = not attempted + not attempted − not attempted + $5,600selected answer correct − not attempted b. not attempted + $4,100selected answer correct = not attempted + not attempted − not attempted + 4,100selected answer correct − not attempted Bal. 5,600 + 4,100not attempted = 0 + 0 − 0 + 9,700 − 0 c. (1,450)selected answer correct + not attempted = + not attempted − not attempted + not attempted − 1,450selected answer correct Bal. 4,150 + 4,100 = 0 + 0 − 0 + 9,700 − 1,450 d. 2,050selected answer correct + (2,050)selected answer correct = not attempted + not attempted − not attempted + not attempted − not attempted Bal. 6,200 + 2,050 = 0 + 0 − 0 + 9,700 − 1,450 e. (720)selected answer correct + = not attempted + not attempted − not attempted + not attempted − 720selected answer correct Bal. 5,480 + 2,050 = 0 + 0 − 0 + 9,700 − 2,170 ----------------------------------------------------------------------------------- 4. The following transactions were completed by the company. The owner invested $17,400 cash in the company in exchange for its common stock. The company purchased supplies for $1,100 cash. The owner invested $11,200 of equipment in the company in exchange for more common stock. The company purchased $320 of additional supplies on credit. The company purchased land for $10,200 cash. Required: Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.) Assets = Liabilities + Equity Cash + Supplies + Equipment + Land = Accounts Payable + Common Stock − Dividends + Revenue − Expenses a. $17,400selected answer correct + not attempted + not attempted + not attempted = not attempted + $17,400selected answer correct − not attempted + not attempted − not attempted b. (1,100)selected answer correct + $1,100selected answer correct + not attempted + not attempted = not attempted + not attempted − not attempted + not attempted − not attempted Bal. 16,300 + 1,100not attempted + 0 + 0not attempted = 0not attempted + 17,400 − 0 + 0 − 0 c. not attempted + not attempted + $11,200selected answer correct + not attempted = + 11,200selected answer correct − not attempted + not attempted − not attempted Bal. 16,300 + 1,100 + 11,200 + 0not attempted = 0not attempted + 28,600 − 0 + 0 − 0 d. not attempted + 320selected answer correct + not attempted + not attempted = $320selected answer correct + not attempted − not attempted + not attempted − not attempted Bal. 16,300 + 1,420 + 11,200 + 0not attempted = 320 + 28,600 − 0 + 0 − 0 e. (10,200)selected answer correct + not attempted + not attempted + $10,200selected answer correct = not attempted + not attempted − not attempted + not attempted − not attempted Bal. 6,100 + 1,420 + 11,200 + 10,200 = 320 + 28,600 − 0 + 0 − 0 ----------------------------------------------------------------------------------- 5. Determine the missing amount from each of the separate situations given below. Assets = Liabilities + Equity (a) $165,000selected answer correct = $119,000 + $46,000 (b) $90,000 = $37,000 + $53,000selected answer correct (c) $186,000 = $124,000selected answer correct + $62,000