Case 1

Case 2

Case 3

Case 4

Total assets, December 31

400,000

225,000

200,000

Total liabilities, December 31

30,000

75,000

40,000

Owner's equity, December 31

Owner's equity, January 1

100,000

10,000

60,000

Total revenues earned during the period

170,000

28,000

124,000

Total expenses incurred during the period

80,000

14,000

85,000

54,000

Owner's withdrawal for the period

20,000

2,000

9,000

10,000

1.What is the standard accounting equation?

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2.How does this important concept help you in understanding the rules of debits and credits?

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