Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 balanceStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started