ACC 205 Homework: Week One Exercises Assignment 1.Requirements 1
Hill Country Handyman Services has total assets for the year of $ $17,600 and total
... [Show More] liabilities of $8,900.
Requirements
1. Use the accounting equation to solve for equity.
2. If next year assets increased by $4,000 and equity decreased by $2,320,
what would be the amount of total liabilities for Hill Country Handyman Services?
Requirement 1. Use the accounting equation to solve for equity.
Begin by solving for the accounting equation. Then use the formula to solve for equity.
Assets
17,600 =
Liabilities
8,900 +
Equity
?
So to solve for equity we do
17,600-8,900 = 8,700
So the answer is The
company has equity of $ 8,700 .
Requirement 2. If next year assets increased by $4,000 and equity decreased by $2,320,
what would be the amount of total liabilities for Hill Country Handyman Services?
So to do Liabilities we do A = L + E
So the assets are 17,600
Liabilities are ?
Equity is 8,700
So to solve we do the assets 17,600 + 4,000= 21,600
Equity of 8,700-2,320 = 6,380
Now to solve for liabilities we do 21,600-6,380= 15,220
The company has liabilities of $ 15,220.
S1-7 Week One Homework Question #2
Jason’s overhead Doors reports the following financial information:
Assets $46,300
Liabilities 13,890
Owner's Capital 30,670
Owner's Withdrawal 5,000
Revenues 8,720
Expenses ?
Requirements
1.Use the accounting equation to solve for the missing information.
2.Did Jason's Overhead Doors report net income or net loss for the year?
Requirement 1. Use the accounting equation to solve for the missing information.
Assets = Liabilities + Owner's Capital - Withdrawals + Revenues - Expenses
$46,300 = $13,890 + $30,670 - $5,000 + $8,720 - $1,980
To figure expenses you do
46,300 = 13,890 + 30,670 - 5,000 + 8,720= 48,280
48,280 – 46,300 = 1,980
E= 1,980
Requirement 2. Did
Jason's Overhead Doors report net income or net loss for the year?
Jason's Overhead Doors reports Net Income of $ 6,740
To figure net income its Revenues – Expenses
So its $8,720 - $1,980 = $6,740
Homework Question # 3 - S1-8 (book/static)
Consider the following accounts:
Identify each account as Asset, Liability, or Equity.
a. Accounts Payable Liability
b. Cash Asset
c. Owner, Capital Equity
d. Accounts Receivable Asset
e. Rent Expense Equity
f. Service Revenue Equity
g. Office Supplies Asset
h. Owner, Withdrawals Equity
i. Land Asset
j. Salaries Expense Equity
S1-12
Arrangements has just completed operations for the year ended December 31, 2018. This is the third
year of operations for the company. The following data have been assembled for the business:
Insurance Expense $3,000
Salaries Expense $38,000
Service Revenue 98,000
Accounts Payable 5,800
Utilities Expense 700
Office Supplies 2,300
Rent Expense 14,000
Jack, Withdrawals 39,700
Jack, Capital, Jan. 1, 2018 12,000
Accounts Receivable 6,500
Cash 5,800
Equipment 12,700
Owner contribution 6,900 [Show Less]