Use the expanded accounting equation to answer each of the following questions.

Question

Use the expanded accounting equation to answer each of the following questions.

(a) The liabilities of Roman Company are $82,500. Owner’s capital account is $152,400; drawings are $91,760; revenues, $439,250; and expenses, $335,840. What is the amount of Roman Company’s total assets? Roman Company’s total assets $

(b) The total assets of Dylan Company are $58,450. Owner’s capital account is $18,360; drawings are $7,910; revenues, $46,040; and expenses, $35,370. What is the amount of the company’s total liabilities? Dylan Company’s total liabilities $

(c) The total assets of Capp Co. are $660,000 and its liabilities are equal to two-thirds of its total assets. What is the amount of Capp Co.’s owner’s equity? Capp Co.’s owner’s equity $

Explanation / Answer

Solution :

a.

liabilities

82500

Owner’s capital account

152400

drawings

-91760

revenues

439250

expenses

-335840

total assets

246550

b.

total assets

58450

Owner’s capital account

-18360

drawings

7910

revenues

-46040

expenses

35370

amount of the company’s total liabilities

37330

c.

total assets

660000

liabilities

-440000

Capp Co.’s owner’s equity

220000

a.

liabilities

82500

Owner’s capital account

152400

drawings

-91760

revenues

439250

expenses

-335840

total assets

246550

b.

total assets

58450

Owner’s capital account

-18360

drawings

7910

revenues

-46040

expenses

35370

amount of the company’s total liabilities

37330

c.

total assets

660000

liabilities

-440000

Capp Co.’s owner’s equity

220000

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