{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Mgmt 200 Assignment Soln 1-13-10

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

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

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

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

View Full Document
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

{[ snackBarMessage ]}