Identify each of the following items by writing one of the words ASSET, LIABILITY, or OWNERS EQUITY in the space provided.

a. A truck which the business owns

b. A bank loan

c. A building

d. A mortgage

e. Office supplies

f. Assets minus liabilities

g. A debt to a finance company

h. Someone owes our company money

i. Our company owes someone money

j. Cash on hand

k. Equipment

l. The difference between total assets and total liabilities

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2. The fundamental accounting equation (A = L + OE) which means assets equal to liabilities plus owners equity, can be rearranged in several ways to find whatever part is unknown. Using this equation, calculate the unknown item in each of the following questions.

a. If assets are $209 436 and liabilities are $114 272, how much is owners equity?

b. If liabilities are $102 500 and equity is $93 000, what is the value of the companys assets?

c. If equity is $148 272 and total assets are $479 195, what amount represents total liabilities?

3. Prepare a balance sheet for Kingstons Pharmacy using todays date. Assets include cash $10 410, medical supplies $84 175, furniture $19 610, equipment $38 420, and building $125 000. Liabilities include a bank loan $25 400 and a debt to Chemical Supply Co. of $5 810. The owner is Frank Wallace.

4. Prepare a balance sheet for the Colonnade Restaurant, owned by Carman Pasquale, dated January 31, 20. Assets include building $154 000, equipment $28 500, furniture $34 600, inventory $16 900, and cash $12 500. Liabilities include mortgage $60 000, Central Wholesales $9 450, and bank loan $10 000. Note that in this question, both the assets and the liabilities must be rearranged. The liabilities are placed in the order of the need to be paid accounts payable first and mortgage last.