The total increase or decrease for one component of the accounting equation is missing in each of the following situations:

i Assets decreased by $30 000; liabilities decreased by $19 500.

ii Owner’s equity decreased by $37 250; assets decreased by $22 500.

iii Liabilities increased by $3000; owner’s equity decreased by $15 000.

iv Owner’s equity increased by $54 000; assets increased by $28 950.

Required:

Using Assets: $135 000 = Liabilities: $45 000 + Owner’s equity: $90 000 as the beginning accounting equation for each of the above situations, and treating each situation independently, determine:

a one or more scenarios to explain 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 changes in the totals).