Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley test bank

         Other income                                 1,500         Interest expense                                                 900
         Sales revenue                              35,000         Depreciation expense                                   1,500
         Equipment                                    39,680
 
Instructions
a)     Calculate total assets.
b)     Calculate total revenue and expenses.
c)     Calculate total liabilities.
 
Solution (10 min.)
a)     Total Assets
                  Cash                                                                  $3,500
                  Equipment                                                     39,680
                  Total                                                                 43,180
 
b)     Total revenue
                  Sales                                                               $35,000
                  Other income                                              1,500
                  Total Revenue                                             $36,500
         Total expenses
                  Cost of goods sold                                      $15,300
                  Selling & administrative expense              3,500