BMAL 530 Homework 1

Description

Question 1

 

a. Total assets of Charter Company equal $720,000 and its equity is $430,000. What is the amount of its liabilities?

 

b. Total assets of Martin Marine equal $520,000 and its liabilities and equity amounts are equal to each other. What is the amount of its liabilities? What is the amount of its equity?

 

Question 2

 

1. Use the accounting equation to compute the missing financial statement amounts.

 

2. Use the expanded accounting equation to compute the missing financial statement amounts.

 

Question 3

 

Indicate in which financial statement each item would most likely appear, by selecting income statement (I), balance sheet (B), or statement of cash flows (CF) from the drop down provided.

 

Question 4

 

Identify each of the following items as assets, liabilities, or equity from the drop down provided.

 

Question 5

 

Determine the missing amount from each of the separate situations given below.

 

Question 6

 

On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,200 in assets to launch the business. On October 31, the company’s records show the following items and amounts.

 

Using the above information prepare an October income statement for the business.

 

Question 7

 

Using the above information prepare an October statement of owner’s equity for Ernst Consulting.

 

Question 8

 

Using the above information prepare an October 31 balance sheet for Ernst Consulting.

 

Question 9

 

Also assume the following:

 

The owner’s initial investment consists of $38,170 cash and $46,030 in land.

 

The company’s $18,170 equipment purchase is paid in cash.

 

The accounts payable balance of $8,630 consists of the $3,450 office supplies purchase and $5,180 in employee salaries yet to be paid.

 

The company’s rent, telephone, and miscellaneous expenses are paid in cash.

 

No cash has been collected on the $14,160 consulting fees earned.

 

Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)