Accounting Assignment #2

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Accounting Homework Assignment #1 1. Question 1: Brady Brothers, a partnership, has total assets of $350,000 and $100,000 of owners' equity. What are the partnership's total liabilities? Assests-Owners Equity= Liabilities $350,000-$100,000= $250,000 Based on the Bradys Brothers partnership, their total liabilities is $250,000. 2. Question 2: During the first month of operation, Brady Brothers made sales to customers totaling $12,000 but received only $6,000 from customers in cash. Brady Brothers incurred $8,000 for operating expenses but only paid $5,000 in cash for those expenses. What was Brady Brothers cash basis income? Cash-based income: Revenues Received $6,000 Less expenses paid $5,000 = Income $1,000 3. Question 3: Please refer to Q2. What was Brady Brothers accrual basis income? Accrual-based income: Revenues Earned $12,000 Less expenses incurred $8,000 =Income $4,000 4. Question 4: Anderson Company’s balance sheet at the end of the year revealed the following information: Clients owe Anderson Company $35,300 for completed projects. Anderson Company owns office equipment totaling $95,500. Anderson Company owns $5,000 of material used on various client projects. Anderson Company owes suppliers $21,200. Anderson Company owes $41,000 to the bank. Anderson Company’s cash balance is $14,400. A. What are Anderson Company’s total assets? 35300+95500+5000+14400= $150,200 B. What are Anderson Company’s total liabilities? 41000+21200= 62,200 C. What is Anderson Company’s total owners’ equity? 150,200-62,200= 88,000 Assests – Liabilities = owners equity D. What is Anderson Company’s debt to equity ratio? Total liabilities divided by owners’ equity = 62,200/88,000= 0.71 to 1 ratio 5. Question 5: Farwell Company has the following information available from its most recent

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