Roger has a building worth 25,000, land worth 125,000, a car worth 10,000. He has a mortgage


Roger has a building worth £25,000, land worth £125,000, a car worth £10,000. He has a mortgage on the building of £20,000 and a car loan of £12,000. He owes R. Graham £2,000 for supplies bought during the year. These have all been used up. He sold goods to G. Live for £1,000. G. Live has not yet paid him.

a. Use the accounting equation to determine Roger’s net worth (capital balance).
b. Prepare a statement of financial position in vertical format using the accounting equation information.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Financial Accounting

ISBN: 9781526803009

9th Edition

Authors: Anne Marie Ward, Andrew Thomas

Question Posted: