In each of the following situations, the total increase or decrease for one component of the accounting equation is missing.

i Assets increased by $20 800; liabilities increased by $6400.

ii Liabilities decreased by $4000; owner’s equity increased by $20 000.

iii Assets decreased by $12 400; owner’s equity decreased by $27 000.

iv Owner’s equity increased by $55 000; liabilities decreased by $11 430.

v Assets increased by $25 200; owner’s equity decreased by $51 500.

Required:

Using Assets: $120 000 = Liabilities: $40 000 + Owner’s equity: $80 000 as the beginning accounting equation for each of the above situations, and treating each situation independently, determine:

a one or more scenarios that could complete the missing component of the equation b the amount of each component in the ending accounting equation. (Hint: use a spreadsheet to keep track of the changes.)