Fundamental Accounting Principles 24th Edition by John Wild Test bank

 
240) At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.
 
241) At the beginning of the period, a company had $350,000 worth of assets, $110,000 worth of liabilities, and $240,000 worth of equity. Assume the only change during the period was a $30,000 purchase of equipment by issuing a note payable. Show the accounting equation with the appropriate amounts at the end of the period.
 
242) The accounts of Odie Company with the increases or decreases that occurred during the past year are as follows:
 
 Account                                      Increase     Decrease Accounts receivable............                                $(5,000)
Accounts payable................                                (11,000)
Notes payable......................         16,000
 
Except for net income, an investment of $3,000 by the owner, and a withdrawal of $11,000 by the owner, no other items affected owner's equity. Using the balance sheet equation, compute net income for the past year.
 
243) The accounts of Mason Company at the end of the past year report the following amounts:
 
 Accounts                                                  Amount Revenues……………………………     $97,000
Expenses…………………………….     $43,800
Owner investments……………….....         2,000
 
If the beginning equity for the year was $173,000, calculate the ending equity for Mason Company.
244) Cornelia's Closet has the following account balances for the dates given:
 
                                                            October 1          October 31
Cash....................................................... $40,000                     60,000
Accounts Receivable............................ 40,000                     38,000
Accounts payable..................................   6,000                     ?
 
Also, its net income, for October 1 through October 31 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both October 1 and October 31.
 
245) If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?
 

 
246) Soo Lin began an Internet Consulting practice and completed these transactions during April of the current year:
 

April.	1	Invested $100,000 of her personal savings into a checking account opened in the name of the business.
	2	Rented office space and paid $1,200 cash for the month of September.
	3	Purchased office equipment for $30,000, paying $8,000 cash and agreeing to pay the balance in one year.
	4	Purchased office supplies for $750 cash.
	8	Completed work for a client and immediately collected $2,700 cash for the services.
	15	Completed $3,600 services for a client on credit.
	20	Received $3,600 from a client for the work completed on September 15.
	30	Paid the office secretary's monthly salary, $3,000 cash.
	30	Lin withdrew $2,000 for personal use.

Show the effects of the above transactions on the accounting equation of Soo Lin, Consultant. Use the following format for your answers. The first item is shown as an example.