1. Indicate whether the account balances will increase or decrease and by how much, based on each transaction. The first one has been done for you. Always ensure that the accounting equation is balanced.

Do not enter dollar signs or commas in the input boxes.

Use the negative sign for negative values.

Where a transaction affects two accounts in the same category, enter the positive amount in the first space provided and enter the negative amount in the second.

Transaction	Assets	Liabilities	Net Worth
Purchased a new television for $1,500 on credit.	1500	1500
1) Purchased $89 worth of fuel on credit.	Answer	Answer	Answer
2) Made a $890 bank loan payment.	Answer	Answer	Answer
3) Purchased a couch for $1,200 cash.	Answer	Answer	Answer
	Answer	Answer	Answer
4) Prepaid three months of rent with $3,300 cash.	Answer	Answer	Answer
	Answer	Answer	Answer
5) Received a cash gift of $860.	Answer	Answer	Answer
6) Used up one of three months of prepaid rent.	Answer	Answer	Answer
7) Paid interest of $45, in cash, on the car loan.	Answer	Answer	Answer
8) Received a hydro bill for $129 to be paid next month.	Answer

2. Using the opening balances provided in the balance sheets below, enter the updated amounts for each transaction in the blank balance sheets labelled Answers.

Do not enter dollar signs or commas in the input boxes.

1. Akira received a student loan of $5,100.

Opening Balances

Assets	Liabilities
Cash	$5,200	Unpaid Accounts	$2,500
Investment	$8,500	Bank Loan	$1,900
Contents of Home	$6,300	Automobile Loan	$4,600
Automobile	$21,700	Student Loan	$6,300
House	$88,900	Mortgage	$44,000
		Total Liabilities	$59,300
		Net Worth	$71,300
Total Assets	$130,600	Liabilities + Net Worth	$130,600

Answers

Assets	Liabilities
Cash	Answer	Unpaid Accounts	Answer
Investment	Answer	Bank Loan	Answer
Contents of Home	Answer	Automobile Loan	Answer
Automobile	Answer	Student Loan	Answer
House	Answer	Mortgage	Answer
		Total Liabilities	Answer
		Net Worth	Answer
Total Assets	Answer	Liabilities + Net Worth	Answer

2. Indira purchased $4,500 worth of investments in cash.

Opening Balances

Assets	Liabilities
Cash	$4,900	Unpaid Accounts	$2,500
Investment	$7,800	Bank Loan	$1,700
Contents of Home	$6,500	Automobile Loan	$5,800
Automobile	$21,500	Student Loan	$6,300
House	$89,500	Mortgage	$41,500
		Total Liabilities	$57,800
		Net Worth	$72,400
Total Assets	$130,200	Liabilities + Net Worth	$130,200

Answers

Assets	Liabilities
Cash	Answer	Unpaid Accounts	Answer
Investment	Answer	Bank Loan	Answer
Contents of Home	Answer	Automobile Loan	Answer
Automobile	Answer	Student Loan	Answer
House	Answer	Mortgage	Answer
		Total Liabilities	Answer
		Net Worth	Answer
Total Assets	Answer	Liabilities + Net Worth	Answer

3. Lloyd paid $700 to reduce an outstanding automobile loan (principal portion).

Opening Balances

Assets	Liabilities
Cash	$4,800	Unpaid Accounts	$1,800
Investment	$1,200	Bank Loan	$2,000
Contents of Home	$6,600	Automobile Loan	$5,000
Automobile	$20,000	Student Loan	$5,700
House	$82,400	Mortgage	$44,700
		Total Liabilities	$59,200
		Net Worth	$55,800
Total Assets	$115,000	Liabilities + Net Worth	$115,000

Answers

Assets	Liabilities
Cash	Answer	Unpaid Accounts	Answer
Investment	Answer	Bank Loan	Answer
Contents of Home	Answer	Automobile Loan	Answer
Automobile	Answer	Student Loan	Answer
House	Answer	Mortgage	Answer
		Total Liabilities	Answer
		Net Worth	Answer
Total Assets	Answer	Liabilities + Net Worth	Answer

4. Daniella bought a boat for $8,700. Paid a $1,000 deposit with cash and borrowed $7,700 from the bank.

Opening Balances

Assets	Liabilities
Cash	$4,300	Unpaid Accounts	$2,200
Boat	$0	Bank Loan	$1,300
Contents of Home	$6,500	Automobile Loan	$5,400
Automobile	$15,800	Student Loan	$6,200
House	$87,600	Mortgage	$55,200
		Total Liabilities	$70,300
		Net Worth	$43,900
Total Assets	$114,200	Liabilities + Net Worth	$114,200

Answers

Assets	Liabilities
Cash	Answer	Unpaid Accounts	Answer
Boat	Answer	Bank Loan	Answer
Contents of Home	Answer	Automobile Loan	Answer
Automobile	Answer	Student Loan	Answer
House	Answer	Mortgage	Answer
		Total Liabilities	Answer
		Net Worth	Answer
Total Assets	Answer	Liabilities + Net Worth	Answer