College accounting HW.

Problem 1 A firm had $1,350,000 in assets and $575,500 in liabilities. a. What is owner equity? b. What are creditor's financial claims on the assets of the firm? Ic. What are owners' financial claims on the assets of the firm? Problem 2 Suppose that during the year, the same firm (as in Problem 1) generates a profit of $137,000, and the owners withdraw $65,000 from the firm. Assume the figures in problem 1 are the beginning year figures. a. What is owner equity at the end of the year? b. What are the owners' financial claims on the assets of the firm at the end of the year? c. If the values in problem I are market value figures and valuation equity is reported to be $123,460 at the end of the year, what is cost basis equity at the end of the year? Problem 3 A farm that has adopted the Financial Guidelines for Agricultural Producers has the following figures on its two most recent balance sheets. Compute the cost basis OE for 2018 and 2019 and record in the table below. Calculate the change in market value OE, change in valuation equity and change in cost basis OE during 2018-2019 and record in the table below. 2018 2019 Difference between 2019 and 2018 $ $ Market value equity Valuation equity Cost basis owner equity 859,854 415,698 $ $ 886,113 448,581