In each of the following situations, the total increase or decrease for one component of the accounting
Question:
In each of the following situations, the total increase or decrease for one component of the accounting equation is missing:
(a) Assets increased by $9,400; liabilities increased by $3,200.
(b) Liabilities decreased by $2,000; owner's equity increased by $10,000.
(c) Assets decreased by $6,200; owner's equity decreased by $12,500.
(d) Owner's equity increased by $27,500; liabilities decreased by $5,715.
(e) Assets increased by $12,600; owner's equity decreased by $25,750.
Required: Using Assets: $60,000 = Liabilities: $20,000 + Owner's Equity: $40,000 as the beginning accounting equation, for each of the preceding situations determine (I) the total increase or decrease for the missing component of the equation, and (2) the amount of each component in the ending accounting equation. Treat each situation independently. lop1
Step by Step Answer:
Accounting Information For Business Decisions
ISBN: 9780030224294
1st Edition
Authors: Billie Cunningham, Loren A. Nikolai, John Bazley