Book 1 - Chapter 9

9-6. First, calculate the January 1 equation and owner’s equity:

(A) $400,000 = (L) $300,000 + (OE) $100,000.

a.	Still $300,000 because assets and owner’s equity have each gone up by the same amount.
b.	(OE) $105,000
c.	(A) $395,000
d.	(OE) $145,000
e.	(L) $290,00

9-7.

	Assets	=	Liabilities	+	Owner’s Equity
January 1:			256,000			L = 238,000 + 18,000
Cumulative Change:	51,000		(18,000)		69,000	L = 51,000 – 69,000
December 31:	644,000		238,000		406,000	L = 644,000 – 406,000

9-8.

	Assets	=	Liabilities	+	Owner’s Equity
June 1:	305,000		96,000
Cumulative Change:	(95,000)		(41,000)		(54,000)	A = 41,000 + 54,000
September 30:	210,000					A = 305,000 + (95,000)

9-9.

	Assets	=	Liabilities	+	Owner’s Equity
September 1:					(81,000)	OE = (79,000) – 2,000
Cumulative Change:	241,000		320,000		2,000	OE = 19,000 – 6,000 – 11,000
September 30:					(79,000)	OE = 241,000 – 320,000

9-10.

	Assets	=	Liabilities	+	Owner’s Equity
January 1:	957,000					A = 893,000 + 64,000
Cumulative Change:	(64,000)		(27,000)		(37,000)	A = (27,000) + (37,000)
December 31:	893,000		295,000		598,000	A = 598,000 + 295,000

9-11.

	Assets	=	Liabilities	+	Owner’s Equity
Cumulative Change:	(7,000)		(45,000)		38,000	OE = 19,000 + 28,000 – 9,000
						L = (7,000) – 38,000

Learning Goal 9, continued

SOLUTIONS

Section II · Transactions—Analyzing and Visualizing

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