Question 3 (8 Marks) The following amounts are the ending balances that form the

Question

Question 3 (8 Marks) The following amounts are the ending balances that form the accounting equation of Tina's Consulting Services T Maria, Drawings Equipment Expenses Land and building T. Maria, Capital, beginning of year. 25,000 Revenues Supplies Accounts payable Accounts receivable Bank loan payable.60,000 Cash 12,000 6,000 23,800 100,000 60,000 400 2,100 1,900 3,000 Instructions a. For each amount, indicate whether it s classified as an Asset (A), Liabillty (L) or Owner Equity (OE) (5 marks) b. Calculate total assets, total liabilities, and total owner equity. Use these amounts to show that the accounting equation is in balance. (3 marks)

Explanation / Answer

Total assets

Total liabilities

Total owner equity

Accounting equation :

Assets = Liabilities + Owner's equity

111300 = 62100+49200

111300=111300

Accounts T. Maria drawings OE Equipment A Expenses OE Land and building A T. Maria capital, beginning of year OE Revenues OE Supplies A Accounts Payable L Accounts receivable A Bank loan payable L Cash A

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