Question 1: 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
|
Question 2: 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
|
Question 3: For the following four cases, compute (1) the book value of equity
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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
|
Question 4: 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
|
|
|
Question 5: 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
|
Question 6: 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.
|
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
|