Basic Accounting Equations

Basic Accounting Equations

Basic Concepts; Identify Assets, Liability, Revenue or Expense from firm's viewpoint

Asset

Expense

Liability

Asset

Revenue

Asset

Asset

Expense

Basic Computations; Rossi Enterprises

Rossi's total assets - $ 70,200

Rossi's total liabilities - $ 43,200

Net income - $7600

Balance Sheet preparation; Preston Company

Preston Company

Balance Sheet

Assets

Liabilities

Building $44,000

Loan Payable $.30,000

Accounts Receivable 24,000

Accounts Payable $ 11,000

Cash 17,000

Land 21,000

Owner's Equity

J. Preston Equity $ 65,000

Total Assets $106,000

Total Liabilities and Equity $ 106,000

Basic Transaction Processing; Richard Parker

& b. Assets =

Liabilities +

Owner's Equity

$19,000 =

Nil +

$19,000

+ $ 9,000 - $ 9,000 =

Nil +

Nil

+ $ 1800 =

$ 1,800 +

Nil

$ 2,100 =

Nil + $ 2,100

- $ 300 =

Nil +

$ ...