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Use the expanded accounting equation to answer each of the following questions. a. The liabilities of Platt Company are $90,000. Owners capital is $150,000; drawings are $40,000; revenues, $450,000; and expenses, $340,000. What is the amount of Platt Companys total assets? b. The total assets of Sierra Company are $57,000. Owners capital is $35,000; drawings are $7,000; revenues, $52,000; and

Chapter 1, Brief Exercises #4

Use the expanded accounting equation to answer each of the following questions.
a. The liabilities of Platt Company are $90,000. Owner’s capital is $150,000; drawings are $40,000; revenues, $450,000; and expenses, $340,000. What is the amount of Platt Company’s total assets?
b. The total assets of Sierra Company are $57,000. Owner’s capital is $35,000; drawings are $7,000; revenues, $52,000; and expenses, $35,000. What is the amount of the company’s total liabilities?
c. The total assets of Birch Co. are $660,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Birch Co.’s owner’s equity?

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Related Book For answer-question
Accounting Principles

Accounting Principles

13th edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

ISBN: 978-1119411482

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The accounting equation is a formula that shows the sum of a company\\\'s liabilities and shareholders\\\' equity are equal to its total assets (Assets = Liabilities + Equity). The clear-cut relationship between a company\\\'s liabilities, assets, and equity is the backbone of double-entry bookkeeping.

Answers for Questions in Chapter 1

Brief Exercises:
Continuing Case:
Critical Thinking:
DO IT! Exercises:
Ethics Case:
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IFRS Exercise:
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