Exam 2: The Accounting Equation and Transaction Analysis

At the beginning of 2020, Stand First Company had total assets of $520,000 and total liabilities of $270,000. 1. If total assets increased $60,000 and owner's equity decreased $90,000 during the year, determine the amount of total liabilities at the end of the year. 2. During the year, total liabilities decreased $73,000 and owner's equity increased $50,000. Compute the amount of total assets at the end of the year. 3. If total assets decreased $105,000 and total liabilities increased $55,000 during the year, determine the amount of owner's equity at the end of the year.

If Haircut 101 performs styling services for cash, then

Eli's Electronic Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $400,000 in electronic repair revenues, $300,000 in expenses, and Eli withdrew $50,000. Eli's Owner's Capital balance changed by what amount from the beginning of the year to the end of the year?

Selina Kyle opens a personal training firm on November 1. Analyze each of the following transactions in a table using the accounting equation. Use these headings: 5. The owner withdrew $2,200 cash for personal use.

Owner's equity can be described as

If assets are $20,000 and liabilities are $8,000, then owner's equity is

Big Bite Diner received a bill of $800 from the Blackstone Advertising Agency. The owner, K. Lang, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

_____________ are the costs of assets consumed or services used in the process of earning revenue.

Generally revenues do not result directly from

The payment of rent expense reduces owner's equity.

Two items are omitted from each of the following summaries of balance sheet and income statement data for companies for the year 2020, Holly Enterprises and Black Sheep Co. Instructions Determine the missing amounts.

The framework used to record and summarize the economic activities of a business enterprise is referred to as the accounting equation. State the basic accounting equation and define its major components. How are business transactions related to the accounting equation?

The basic accounting equation is in balance when the creditor and ownership claims against the business equal the assets.

At the beginning of the year, Shaolin Company had total assets of $520,000 and total liabilities of $210,000.

If assets are $20,000 and owner's equity is $11,000, then liabilities are

The collection of an accounts receivable increases total assets.

If Doane Company's liabilities are $28,000 and its owner's equity is $20,000, then the company's assets total

Fish Mooney, owner of Gotham Gelato, withdrew cash for personal use. The drawing

Eli's Electronic Repair Shop started the year with total assets of $300,000 and total liabilities of $200,000. During the year, the business recorded $400,000 in electronic repair revenues, $300,000 in expenses, and Eli withdrew $50,000. Eli's Owner's Capital balance at the end of the year was