nled Tor separalely irom its owner or owners. 6. Revenae is recorded when produc

Question

nled Tor separalely irom its owner or owners. 6. Revenae is recorded when products and services are delivered 7. Usually created by a pronouncement from an authoritative body 8. Information is based on actual costs incurred in transactions. Determine the missing amount from each of the separate situations a, b, and c below. Liabilities $20,000 34,000 Equity $ 45,000 Assets (a) $? (b) 100,000 (c) 154,000 40,000 Answer the following questions. (Hint: Use the accounting equation.) a. At the beginning of the year, Addison Company's assets are $300,000 and its equity is $100

Explanation / Answer

Answer of Part 1:

Assets = Liabilities + Equity
Assets = $20,000 + $45,000
Assets = $65,000

Answer of Part 2:

Equity = Assets – Liabilities
Equity = $100,000 - $34,000
Equity = $66,000

Answer of Part 3:

Liabilities = Assets – Equity
Liabilities = $154,000 - $40,000
Liabilities = $114,000

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