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calculate assets, liabilities and profit? Accounts payable $9,320 Accounts receivable 8,600 Building and equipment 246,000 Cash 15,000 L. DeRosier, drawings 12,000 Insurance expense 3,450 Interest

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calculate assets, liabilities and profit?

Accounts payable $9,320 Accounts receivable 8,600 Building and equipment 246,000 Cash 15,000 L. DeRosier, drawings 12,000 Insurance expense 3,450 Interest expense 5,905 Interest payable 420 L. DeRosier, capital, beginning of year 40,695 Mortgage payable 210,000 Other assets 4,500 Prepaid insurance 510 Rental revenue 36,000 Repair expenses 2,300 Telephone expense 680 Wages expense 5,490 Additional information: During the year. L. DeRosier invested $8,000 into the business. Instructions a) For each of the above items indicate in column a) whether the item is an Asset (A), Liability (L), Capital (C). Drawings (D). Revenue (R), or Expense (E) item. b) For each of the above items indicate on which financial statement-income statement (15) statement of owner's equity (OE), or balance sheet (BS)-each item would be reported. c) Calculate total assets. d) Calculate total liabilities. e) Calculate profit. ) Calculate total owner's equity. g) Demonstrate that the accounting equation is in balance

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