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The Accounting Equation

The Accounting Equation. During 2007, Total Liabilities for XYZ Inc. increased $60,000 and Total Assets increased by $50,000 . What changes must have occurred in Total Equity?. The Accounting Equation. Owners Equity must have decreased by $10,000. The Accounting Equation.

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The Accounting Equation

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  1. The Accounting Equation During 2007, Total Liabilities for XYZ Inc. increased $60,000 and Total Assetsincreased by $50,000. What changes must have occurred in Total Equity?

  2. The Accounting Equation Owners Equity must have decreased by $10,000

  3. The Accounting Equation At 12/31/07, XYZ has Total Assets of $463,000, Total Liabilities of $285,000, and Total Retained Earnings of $103,000. What must be the Balance of Contributed Capital at 12/31/07?

  4. The Accounting Equation Contributed Capital must have a balance of $75,000

  5. The Accounting Equation XYZ Co. had Total Assets of 600,000 at the Beginning of the Year. Net Loss for the year was $15,000. They paid a $75,000 dividend, borrowed $50,000, and received $80,000 additional capital from owners. What will be Total Assets at the End of the Year?

  6. The Accounting Equation Total Assets at the end of the year would be $640,000

  7. The Accounting Equation XYZ Co. had Total Assets at the end of the period of $124,600; Total Liabilities at the end of the period of $58,500; and Contributed Capital at the end of the period of $22,000. Retained Earnings had a beginning of the period balance of $29,300. Dividends of $6,000 were paid during the period. What must have been Net Income or Net Loss for the period given this information?

  8. The Accounting Equation XYZ would have had Net Income of $20,800 for the period

  9. The Accounting Equation Examples to work through in your book: Ex 1-4, 1-5, 1-7

  10. Statement of Retained Earnings XYZ started the year with Beginning Balances for Total Assets of $295,000, and Total Liabilities of $172,000. During the year, Total Revenues were $136,000; Total Expenses were $105,000; Total dividends were $60,000. Assume no additional Contributed Capital was received in the year, what would be the Ending Balance of Owners’ Equity?

  11. Statement of Retained Earnings The ending balance of Retained Earnings would be $94,000.

  12. Statement of Retained Earnings Examples to work through in your book: Ex 1-6, 1-10, 1-11

  13. Analysis of an Asset Account On January 1, 2007, XYZ showed a balance of Supplies of $18,000. During the month, XYZ Co. paid $7,500 cash for supplies. At January 31, 2007, an on-site count of Supplies shows $12,000 remaining. What should be the amount of Supplies Expense on the Income Statement for the month of January?

  14. Analysis of an Asset Account Supplies Expense on the Income Statement for the period should be $13,500 – the amount used up for the period.

  15. Analysis of an Asset Account On March 1, 2007, XYZ has a balance in the Supplies account of $22,400. An on-site count shows $11,900 of Supplies left in the store room. An Income Statement for the month of March shows that $17,000 of Supplies were used up (expensed) this period. How much of Supplies must have been purchased for the month?

  16. Analysis of an Asset Account XYZ must have purchased $6,500 in supplies for the month of March.

  17. Analysis of an Asset Account All Sales for XYZ are on account (recorded through Accounts Receivable). Accounts Receivable had a beginning balance for the period of $50,000. Sales for the Year were $162,000, and the Accounts Receivable ending balance was $63,000. How much was collected in Cash from Customers this year for credit sales?

  18. Analysis of an Asset Account XYZ must have collected $149,000 in cash from credit sales for the period.

  19. XYZ Inc. had these account balances at December 31st

  20. XYZ Inc. had these account balances at December 31st What is Gross Profit What is Income From Operations? What is Income Before Taxes? What is Net Income? What are Current Assets? What are Non-Current Assets? What are Current Liabilities? What is the Ending Balance in Retained Earnings? What is Total Stockholders’ Equity? What is Working Capital? What is the Current Ratio? What is the Profit Margin %?

  21. What is Gross Profit $129,300 What is Income From Operations? 32,040 What is Income Before Taxes? 39,100 What is Net Income? 29,325 What are Current Assets? 107,425 What are Non-Current Assets? 238,000 What are Current Liabilities? 54,700 What is the Ending Balance of RE? 92,325 What is Total Stockholders’ Equity? 140,725 What is Working Capital? 52,725 What is the Current Ratio? 1.96 What is the Profit Margin %? .14

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