| Note: Bold numbers mean a calculated amount. | ||
| Reinforcement Problems | ||
| LG | 9-1. | |
| Assets |
=
|
Liabilities |
+
|
Owner’s
Equity
|
|
| Cumulative Change: | + $5,000 | + $15,000 |
−
$10,000
|
||
| The company borrowed
$15,000 in resources; during the same time, the combination of operations and owner’s drawing decreased owner’s equity by $10,000 (not a good business plan). |
|||||
 |
| LG | 9-2. | |
| Assets |
=
|
Liabilities |
+
|
Owner’s
Equity
|
|
| Cumulative Change: | + $40,000 | + $20,000 |
+
$20,000
|
||
| The company borrowed
$20,000 and also increased resources by $20,000 from operations and/or owner’s investments. |
|||||
|
| LG | 9-3. | |
| Assets |
=
|
Liabilities |
+
|
Owner’s
Equity
|
|
| Cumulative Change: | + $16,000 | − $9,000 |
+
$25,000
|
||
| This company used
$9,000 of resources to pay debts. These resources were more than replaced
by a $25,000 combination of operations and/or owner investments. These are good changes. |
|||||
|
| LG | 9-4. | |
| Assets |
=
|
Liabilities |
+
|
Owner’s
Equity
|
||
| January 1: |
$43,000
|
(70,000 − 27,000) | ||||
| Cumulative Change: | + $12,000 | − $ 15,000 |
+ $27,000
|
[12,000 − (−15,000)] | ||
| December 31: | $95,000 | $25,000 |
$70,000
|
(95,000 − 25,000) | ||
| This is similar to what happened to Diablo Valley Services in LG 9-3, above. | ||||||
|
| LG | 9-5. | |
| Assets |
=
|
Liabilities |
+
|
Owner’s
Equity
|
||
| June 1: | $90,000 | $15,000 |
$75,000
|
(L = 90,000 − 75,000) | ||
| Cumulative Change: | + $12,000 | + $22,000 |
− $10,000
|
[L = 12,000 − (−10,000)] | ||
| June 30: | $37,000 | (L = 15,000 + 22,000) | ||||
| This is similar to what happened to Vermont Street Surf Shop in LG 9-1, above. | ||||||
|
Learning
Goal 9
SOLUTIONS
|
Learning
Goal 9: Analyze the Cumulative Effect of Transactions
|
S1
|
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