EXERCISES-Chapter 1-2-3-4

Hint use the accounting equation show new balances

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Unformatted text preview: nning future operations Answer the following questions • Analysing the transactions? (Hint: Use the accounting equation.) Show new balances after each transaction. Cadence Office Supplies has assets equal to $123,000 and liabilities equal to $47,000 at year-end. What is the total equity for Cadence at year-end? • At the beginning of the year, Addison Company’s assets a re $300,000 and its equity is $100,000. During the year, assets increase $80,000 and liabilities increase $50,000. What is the equity at the end of the year? • At the beginning of the year, Quasar Company’s liabilities equal $70,000. During the year, assets increase by $60,000, a nd at year-end assets equal $190,000. Liabilities decrease $5,000 during the year. What are the beginning and ending amounts of equity? Leora Holden began a professional practice on June 1 and plans to prepare financial statements at the end of each month. During June, Holden (the owner) completed these transactions. a. Owner invested $60,000 cash along with equipment th...
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