Account Essay

477 WordsMar 8, 20152 Pages
Question 1 Use the accounting equation to answer the following questions. 1. West Wind Sails Co. has total assets of $ 520,000 and total liabilities of $235,000. What is owner’s equity? 2. Mercy Family Center has total assets of $ 825,000 and owner’s equity of $ 705,000. What are total liabilities? 3. Cucina Med Restaurant has total liabilities of $ 1,840,000 and owner’s equity of $ 895,000. What are total assets? Question 2 Use the accounting equation to answer the following questions a) The liabilities of Goofy Co are RM90,000. Owner’s equity capital is RM150,000; drawings are RM40,000; revenue RM 450,000 and expenses RM 320,000. What is the amount of total assets? b) The total asset of Senorita Co are RM 57,000. Owner’s equity capital is RM 25,000; drawings are RM7,000; revenues RM52,000; and expenses RM30,000. What is the amount of total liabilities? c) The total assets of Dora Co at 31 Dec 2012 are RM600,000; liabilities are equal to two-third of its total; Capital at 1 Jan 2012 is RM 350,000 Revenue RM 120,000 and expenses RM 180,000. What is the amount of drawing for the year 2012? Question 3 Selected transaction for Green Accounting services are listed below: Assets = Liabilities + Equity 1. Made cash investment to start business. _______________________________ 2. Paid monthly rent. ________________________________ 3. Purchased equipment on credit. _________________________________ 4. Billed customer for service performed. _________________________________ 5. Withdrew cash for owner’s personal use. _______________________________ 6. Received cash from debtors. _________________________________ 7. Purchased additional equipment for cash._______________________________ 8. Invested further cash into the business.

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