Accounting homework, chapter 2.

Rasha Ghaddar 201503686

E2.5
Assets = Liabilities + Equity
a) 578000$ = 342000$ + (578000-342000=)236000$
b) 1132500$ = 562500$ + 570000$
c) 307500$ =(307500-187200=)120300$ + 187200$

E2.6

Transaction Assets = Liabilities + Equity
a) I I NE
b) NE NE NE
c) D D NE
d) D D NE
e) I NE I
f) I I NE
g) I NE I
h) NE NE NE
i) NE NE NE




P2.1A





Assets Liabilities & Equity

Land.425 000$ Liabilities:
Buildings 450 000$ Notes payable620 000$
Equipment 39 200$ Accounts payable..54 800$
Furnishings..58 700$ Salaries payable.33 500$
Snowmobiles15 400$ Interest payable..12 000$
Accounts receivable10 600$ Total liabilities720 300$
Cash..31 400$ Equity:
Share capital..135 000$
Retained earnings175 000$

Total 1 030 300$ Total..1 030 300$


Assets = Liabilities + Equity.
a)To get the total amount of assets, we just had to add
them up together one by one, and we got 1 030 300$.To get
SMOKEY MOUNTAIN LODGE
Statement of Financial Position
31 December 2013
the total liabilities, we also added them up and we got 720
300$.

Liabilities + equity = 1 030 300$
720 300$ + (share capital + retained earnings) = 1 030 300$
720 300$ + ( 135000$ + retained earnings) = 1 030 300$
By solving this equation we get:
Retained earnings= 1 030 300$- (720 300$ + 135
000$)=175 000$

b) If we assume that no payment is due on the notes payable
until 2015, we notice that the amount of cash and the
accounts receivable both together ( =42 000$ ) is very small
comparing to the total liabilities ( 720 300$ - 620 000$ =
100 300$ ). The company will not be able to cover her
debts. This statement of financial position indicates that
the company is in a weak situation.
















P2.5A





Assets Liabilities & Equity

Animals.189 060$ Liabilities:
Cages 24 630$ Notes payable180 000$
Costumes. ..31 500$ Accounts payable..26 100$
Trucks & wagons105 840$ Salaries payable..9 750$
Tents63 000$ Total liabilities215 850$
Props &equipment... 89 580 Equity:
Notes receivable. 9 500$ Share capital..310 000$
Accounts receivable7 450$ Retained earnings27 230$
Cash..32 520$


Total553 080$ Total..553080$
HERE COME THE CLOWNS!
Statement of Financial Position
31 June 2013

Assets = Liabilities + Equity
Assets = 215 850$ + (310 000$ + 27 230$)
Assets = 553 080$

Total= all the values added of the assets + cash
553 080$ = 520 560$ + cash
Cash= 553 080 520 560 = 32 520$

Total liabilities=notes payable +accounts payable + salaries
payable=180 000$ + 26 100$ + 9 750$= 215 850$

b) To reflect the loss of the asset (tent destroyed in fire,
14 300$), we report this fire as subsequent event in the
notes to the financial statements that are meant to provide
the reader with additional insights into the operations and
financial position of the company.