Chapter 1 Series B Problems

Prob 1-1B
#1
Assets = Liabilities + Owner's Equity
Cash + "Accts.
Rec" + Supplies = "Accounts
Payable" + "Cody
Macedo,
Capital" - "Cody
Macedo,
Drawing" + "Fees
Earned" - "Rent
Expense" - "Salaries
Expense" - "Supplies
Expense" - "Auto
Expense" - "Misc.
Expense"
a. $75,000 $75,000
b. $3,000 $3,000
Bal. $75,000 $3,000 $3,000 $75,000
c. $(1,000) $(1,000)
Bal. $74,000 $3,000 $2,000 $75,000
d. $11,800 $11,800
Bal. $85,800 $3,000 $2,000 $75,000 $11,800
e. $(4,000) $(4,000)
Bal. $81,800 $3,000 $2,000 $75,000 $11,800 $(4,000)
f. $(800) $(600) $(200)
Bal. $81,000 $3,000 $2,000 $75,000 $11,800 $(4,000) $(600) $(200)
g. $(2,500) $(2,500)
Bal. $78,500 $3,000 $2,000 $75,000 $11,800 $(4,000) $(2,500) $(600) $(200)
h. $(1,100) $(1,100)
Bal. $78,500 $1,900 $2,000 $75,000 $11,800 $(4,000) $(2,500) $(1,100) $(600) $(200)
i. $12,500 $12,500
Bal. $78,500 $12,500 $1,900 $2,000 $75,000 $24,300 $(4,000) $(2,500) $(1,100) $(600) $(200)
j. $(5,000) $(5,000)
Bal. $73,500 $12,500 $1,900 $2,000 $75,000 $(5,000) $24,300 $(4,000) $(2,500) $(1,100) $(600) $(200)

#2
Owner's equity is the right of owners to the assets of the business. Owner's Equity is increased by owner's investments and revenues and decreased by expenses and owner's draws
#3
$24,300 - $4,000 - $2,500 - $1,100 - $600 - $200 = $15,900... [continues]

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