Mgmt 200 Assignment Soln 1-13-10

Mgmt 200 Assignment Soln 1-13-10 - Retained Earnings Net...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Management 200 – Introductory Financial Accounting– Spring 2010 Krannert School of Management - Purdue University Solutions to class assignment for January 13, 2010 Exercise 1-3 The Accounting Equation 1. A = L + OE 500,000 = 250,000 + OE OE = 250,000 2. A = L + OE (500,000 + 100,000) = (250,000 + 77,000) + OE OE = 273,000 3. A = L + OE A = (250,000 + 33,000) + (250,000*– 58,000) A = 283,000 + 192,000 A = 475,000 4. A = L + OE 1,000,000 = L + 250,000* L = 750,000 * From 1. above Exercise 1-8: Net Income (or loss) and retained earnings 1. Revenue Expenses = Net Income 25,000 (6,500 + 12,000) = 6,500 2. Retained
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Retained Earnings Net Earnings Beginning of + Income Dividends = End of Year Year 8,500 + 6,500 3,000 = 12,000 3. Total Assets: Cash $ 13,000 Accounts receivable 4,500 Office equipment 7,500 Total assets $ 25,000 4. Total Liabilities: Accounts payable $ 5,000 5. Owners Equity: Capital stock + Retained earnings = Owners equity 8,000 + 12,000 = 20,000 (Or $25,000 in total assets less $5,000 in total liabilities.) 6. A = L + OE 25,000 = 5,000 + 20,000...
View Full Document

Page1 / 2

Mgmt 200 Assignment Soln 1-13-10 - Retained Earnings Net...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online