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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