In each of the following situations, the total increase or decrease for one component of the accounting
Question:
In each of the following situations, the total increase or decrease for one component of the accounting equation is missing.
i Assets increased by \(\$ 20800\); liabilities increased by \(\$ 6400\)
ii Liabilities decreased by \(\$ 4000\); owner's equity increased by \(\$ 20000\)
iii Assets decreased by \(\$ 12400\); owner's equity decreased by \(\$ 27000\)
iv Owner's equity increased by \(\$ 55000\); liabilities decreased by \(\$ 11430\)
v Assets increased by \(\$ 25200\); owner's equity decreased by \(\$ 51500\)
Required:
Using Assets: \(\$ 120000=\) Liabilities: \(\$ 40000+\) Owner's Equity: \(\$ 80000\) as the beginning accounting equation for each of the above situations, determine:
a the total increase or decrease for the missing component of the equation, and b the amount of each component in the ending accounting equation.
Treat each situation independently.
Step by Step Answer:
Accounting Information For Business Decisions
ISBN: 9780170253703
2nd Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley, Marie Kavanagh, Geoff Slaughter, Sharelle Simmons