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Paragraph PE 1-2A Accounting equation Obj. 3 Example Exercise 1-2 Terry Fleming is the owner and operator of Go-For-It LLC, a motivational consulting business. At the end of its accounting period, December 31, 2018, Go-For-It has assets Show Ma of $675,000 and liabilities of $215,000. Using the accounting equation, determine the How following amounts: a. Owner's equity as of December 31, 2018. b. Owner's equity as of December 31, 2019, assuming that assets increased by $112,300 and liabilities increased by $32,000 during 2019. PE 1-2B Accounting equation Obj. 3 Example Exercise 1-2 Fritz Evans is the owner and operator of Be-The-One, a motivational consulting business. At the end of its accounting period, December 31, 2018, Be-The-One has Show assets of $395,000 and liabilities of $97.000. Using the accounting equation, How determine the following amounts: a. Owner's equity as of December 31, 2018. b. Owner's equity as of December 31, 2019, assuming that assets decreased by $65,000 and liabilities increased by $36,000 during 2019.PE 1-3A Transactions Obj. 4 Example Exercise 1-3 Bridgeport Delivery Service is owned and operated by Jerome Foley. The following selected transactions were completed by Bridgeport Delivery Service during Show Ma February: How 1. Received cash from owner as additional investment, $40,000. 2. Billed customers for delivery services on account, $13,750. 3. Paid creditors on account, $2,500. 4. Received cash from customers on account, $9,000. 5. Paid cash to owner for personal use, $1,000. Indicate the effect of each transaction on the accounting equation elements (Assets, Liabilities, Owner's Equity, Drawing, Revenue, and Expense). Also indicate the specific item within the accounting equation element that is affected. To illustrate, the answer to (1) follows: (1) Asset (Cash) increases by $40,000; Owner's Equity (Jerome Foley, Capital) increases by $40,000.Obj. 4 The following selected transactions were completed by Silverado Delivery Service during February: 1. Received cash from owner as additional investment. $25,000. 2. Purchased supplies for cash, $750. 3. Paid rent for February, $3,000. 4. Paid advertising expense, $1.500. 5. Received cash for providing delivery services, $16,800. 6. Billed customers for delivery services on account, $32,500. 7. Paid creditors on account, $1,400. 8. Received cash from customers on account, $23,770. 9. Determined that the cost of supplies on hand was $275 and $475 of supplies had been used during the month. 10. Paid cash to owner for personal use. $5,000. Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions. (1) through (10), in a column and inserting at the right of each number the appropriate letter from the following list: a. Increase in an asset, decrease in another asset. b. Increase in an asset, increase in a liability. c. Increase in an asset, increase in owner's equity. d. Decrease in an asset, decrease in a liability. e. Decrease in an asset, decrease in owner's equity.EX 1-16 From the following list of selected items taken from the records of Rosewood Appliance Service as of a specific date, identify those that would appear on the balance sheet and income statement: 1. Accounts Payable 6. Land 2. Accounts Receivable 7. Rent Expense 3. Andrew King, Capital 8. Supplies 4. Cash 9. Wages Expense 5. Fees Earned 10. Wages Payable