ACC1112

School: Paradise Valley Community College - Course: ACC 111 - Subject: Accounting

BASIC ACCOUNTING EQUATION Assets = Liabilities + Owners Equity N t owners capital owners withdrawals (draws,drawings) + Revenues - Expenses OwnersEquity *ANED ACCOUNTING ↑ ↑ Assets = Liabilities owners - Owners+ Revenue - Expenses capital draws NETINCOME / (NET LOSS) Revenue- Expenses = Net Income/(NETLOSS OWNER'S EQUITY FORMULA Owner'sCapital, beginning +ownerscontribution - Owners draws + Revenues &Net incomeor net loss - Expenses =Owner'scapital, ending POLL Question. 12 Revenues - Expenses = $100,000 Assets= Liabilities owners Equity $40,000 $30,000 Assets = $70,000 Assets decreaseby $70,000

S-F:1-8 Identifying accounts Identify each account as Asset, Liability, or Equity. a) Accounts Payable b) Cashc) Owner, Capital d) Accounts Receivable e) Rent Expense f)Service Revenue g) Office Supplies h) Owner, Withdrawals i)Land j)Salaries Expense E-F:1-20 Using the accounting equation Compute the missing amount in the accounting equation for each entity from the financial information presented: AssetsLiabilitiesEquity Hair Styles$?$ 36,000$ 36,000 Style Cuts90,000?48,000 Your Basket101,00068,000? E-F:1-21 Using the accounting equation Wizco Advertising's balance sheet data at May 31, 2024, and June 30, 2024, follow: May 31, 2024June 30, 2024 Total Assets$ 122,000$ 287,000 Total Liabilities66,000144,000 For each of the following situations that occurred in June 2024 with regard to owner contributions and owner withdrawals, compute the amount of net income or net loss during June 2024. a)The owner contributed $10,000 to the business and made no withdrawals. b)The owner made no contributions. The owner withdrew cash of $3,000. c)The owner made contributions of $12,500 and withdrew cash of $30,000. a.b.c. Page 7ASSET Equit TY ASS ET ASS ET Equit y ASS ET Equit y Equit y Equit y = + 72,000 =# = $4,000+ = + $33,000