Balance Sheet and External Users

1155 WordsJan 29, 20135 Pages
Khalid Al Mulla ------------------------------------------------- 213102097 ------------------------------------------------- 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 ------------------------------------------------- 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 -------------------------------------------------…show more content…
For example, the first answer is:(1) Increase in assets and increase in owner’s equity. ------------------------------------------------- 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. 6.Brandon invested an additional $32,000 in the business. 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),
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