Question 1

At the beginning of the year, Jess company had total assets of $700,000 and total liability of $500,000. Answer the following questions.   

1. If total assets increased by $150,000 during the year and total liabilities decreased by $80,000, what is the amount of owner's equity at the end of the year?
2. During the year, total liabilities increased by $100,000 and owner's equity decreased by $70,000. What is the amount of total assets at the end of the year?
3.  If the total assets decrease by $90,000 and owner's equity increases by $110,000 during the year, what is the amount of total liabilities at the end of the year?

Question 2

The following transaction occurred for a new motel before and during the first month of business operations. 

1. Owner invested $360,000 cash deposited in the business bank account.
2. Owner paid $128,000 cash for land.
3. Owner paid cash for building $395,400.
4. Equipment was purchased for $662,000, paying $22,000 cash and the balance on a note payable. 
5. Furnishings were purchased for $98,000 cash
6. Supplies were purchased for $2,800 on account.
7. Room revenue during the month was $44,000 cash.
8. Vending revenue from vending machines was $800 cash.
9. Wages of $2,900 cash were paid.
10. Owner paid $2,200 on accounts payable.
11. Owner withdrew $500 cash

Prepare the Balance Sheet and Income Statement from the following information