Cash C 105,000 105,000 75,000 30,000 (Assets – Liab.)
Be. 203
Compute the missing amount in each category of the accounting equation.
Assets Liabilities Stockholders’ Equity
(a) $243,000 $ ? $ 91,000
(b) $183,000 $ 75,000 $ ?
(c) $ ? $212,000 $310,000
Ans: N/A, LO: 3, Bloom: AN, Difficulty: Medium, Min: 5, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: Problem Solving, IMA: Reporting
Solution 203
(a) $152,000: ($243,000 - $91,000 = $152,000). (Assets – Stock. Equity)
(b) $108,000: ($183,000 - $75,000 = $108,000). (Assets – Liab.)
(c) $522,000: ($212,000 + $310,000 = $522,000). (Liab. + Stock. Equity)
Be. 204
Classify each of these cash flows as Operating (O), Investing (I), or Financing (F).
_____ 1. Collected cash from customers
_____ 2. Paid utility bill
_____ 3. Issued common stock
_____ 4. Sold investments
_____ 5. Purchased equipment
_____ 6. Paid dividend
_____ 7. Borrowed from bank
_____ 8. Paid employee salaries
Ans: N/A, LO: 3, Bloom: C, Difficulty: Easy, Min: 5, AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FC: Reporting, AICPA PC: None, IMA: Reporting
Solution 204
1. O 5. I
2. O 6. F
3. F 7. F