exercise 1

1. Applying Basic Accounting Equation Royals Palm, Inc. reports the following assets and liabilities. Compute the totals that would appear in the corporations basic accounting equation

(Assets = Liabilities + Stockholders Equity (Capital Stock)).

Cash $55,000

Accounts Payable $25,000

Office Supplies $1,500

Loan Payable $7,000

Accounts Receivable $10,000

Assets= = Liabilities +stockholder's equity