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    Accounting Exercises

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    For the following four cases, use the accounting equation to compute the missing quantity.
    Assets Liabilities Owners' Equity
    Case A $10,000 $ 4,000 A
    Case B 8,000 B $3,500
    Case C C 5,500 7,000
    Case D 13,000 15,000 D

    Using the following information, compute total current assets.
    Land $ 9,000
    Machinery 1,100
    Accounts payable 1,750
    Cash 400
    Buildings 10,000
    Accounts receivable 950
    Retained earnings 1,000
    Inventory 4,000
    For the following four cases, compute (1) the book value of equity

    Assets Liabilities Number of Shares of Stock Outstanding Market Price per Share
    Case A $ 10,000 $ 4,000 1,000 $15
    Case B 8,000 7,000 500 10
    Case C 13,500 5,500 300 20
    Case D 100,000 150,000 1,000 7

    Using the following information, compute total revenues. Caution: Not all of the items listed should be included in the computation of total revenues.

    Cost of goods sold $ 9,000 Wages payable $ 250
    Interest revenue 1,100 Accounts receivable 700
    Advertising expense 1,750 Retained earnings 1,000
    Cash 400 Consulting revenue 4,000
    Sales 10,000

    For the following four cases, compute net income (or net loss). Caution: Not all of the items listed should be included in the computation of net income.
    Case A Case B Case C Case D
    Cost of goods sold $ 60,000 $ 30,000 $60,000 $110,000
    Interest expense 18,000 47,000 25,000 31,000
    Cash 3,000 4,500 2,100 6,000
    Retained earnings 50,000 15,000 31,000 70,000
    Sales 100,000 150,000 70,000 200,000
    Accounts payable 12,000 20,000 5,000 38,000
    Rent revenue 5,000 1,000 12,000 10,000
    Machinery 175,000 60,000 50,000 185,000

    For the following four cases, use the expanded accounting equation to compute the missing quantity.
    Assets Liabilities Capital Stock Retained Earnings
    Case A $20,000 $ 8,000 A $ 3,500
    Case B 16,000 B $ 5,000 2,000
    Case C C 11,000 14,000 32,000
    Case D 46,000 30,000 20,000 D

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    For the following four cases, use the accounting equation to compute the missing quantity.
    Assets Liabilities Owners' Equity
    Case A $10,000 $ 4,000 A
    Case B 8,000 B $3,500
    Case C C 5,500 7,000
    Case D 13,000 15,000 D

    Assets = Liabilities + Owners' Equity

    Case A 10,000 = 4,000 + A
    A = 6,000

    Case B 8,000 = B + 3,500
    B = 4,500

    Case C C = 5,500 + 7,000
    C = 12,500

    Case D 13,000 = 15,000 + D
    D = -2,000

    Using the following information, compute total current assets.
    Land $ 9,000
    Machinery 1,100
    Accounts payable 1,750
    Cash 400
    Buildings 10,000
    Accounts receivable 950
    Retained earnings 1,000
    Inventory 4,000

    Total current assets = Cash + Accounts Receivable + Inventory
    = 400 + 950 + 4,000 = 5,350

    For the following four cases, compute (1) the book value of equity

    ...

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