# Use the expanded accounting equation to answer each of the following questions: (a) The liabilities of Cai Company are \$90,000. Meiyu Cais capital account is \$150,000; drawings are \$40,000; revenues, \$450,000; and expenses, \$320,000. What is the amount of Cai Companys total assets? (b) The total assets of Pereira Company are \$57,000. Karen Perrys capital account is \$25,000; drawings are

Chapter 1, Brief Exercises #4
Use the expanded accounting equation to answer each of the following questions:
(a) The liabilities of Cai Company are \$90,000. Meiyu Cai’s capital account is \$150,000; drawings are \$40,000; revenues, \$450,000; and expenses, \$320,000. What is the amount of Cai Company’s total assets?
(b) The total assets of Pereira Company are \$57,000. Karen Perry’s capital account is \$25,000; drawings are \$7,000; revenues, \$50,000; and expenses, \$35,000. What is the amount of the company’s total liabilities?
(c) The total assets of Yap Co. are \$600,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Yap Co.’s owner’s equity?

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