# Balance Sheet and External Users

1155 Words5 Pages
Khalid Al Mulla
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213102097
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Assignment 1

BE1-1
Presented below is the basic accounting equation (in thousands). Determine the missing amounts. Assets = Liabilities + Equity 90,000 = 50,000 + 40,000 110,000 = 40,000 + 70,000
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94,000 = 41,000 + 53,000

BE1-5
Indicate whether each of the following items is an asset (A), liability (L), or part of equity (E).

(A) Accounts receivable
(L) Salaries and wages payable
(A) Equipment
(A) Supplies
(E) Owner 's capital
(L) Notes payable
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For example, the first answer is:(1) Increase in assets and increase in owner’s equity.
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E1-7
Brandon Computer Timeshare Company entered into the following transactions duringMay 2008.
1.Purchased computer terminals for \$20,000 from Digital Equipment on account.
2.Paid \$4,000 cash for May rent on storage space.
3.Received \$15,000 cash from customers for contracts billed in April.
4.Provided computer services to Fisher Construction Company for \$3,000 cash.
5.Paid Northern States Power Co.\$11,000 cash for energy usage in May.
7.Paid Digital Equipment for the terminals purchased in (1) above.
8.Incurred advertising expense for May of \$1,200 on account.

Instructions
Indicate with the appropriate letter whether each of the transactions above results in:
(a)an increase in assets and a decrease in assets.
(b)an increase in assets and an increase in owner’s equity.
(c)an increase in assets and an increase in liabilities.
(d)a decrease in assets and a decrease in owner’s equity.
(e)a decrease in assets and a decrease in liabilities.
(f)an increase in liabilities and a decrease in owner’s equity.
(g)an increase in owner’s equity and a decrease in liabilities.

(1-C), (2-D), (3-A), (4-B), (5-D), (6-B),