Ex. 1–6 a. $456,100 ($118,000 + $338,100) b. $355,010 ($766,750 $411,740) – c. $2,072,200 ($3,250,300 $1,178,100) – Ex. 1–7 a. $775,000 ($1,250,000 $475,000) – b. $890,000 ($775,000 + $225,000 $110,000) – c. $385,000 ($775,000 $300,000 $90,000) – – d. $1,460,000 ($775,000 + $550,000 + $135,000) e. Net income: $350,000 ($1,500,000 $375,000 $775,000) – – Ex. 1–8 a. (2) liability b. (1) asset c. (3) equity (retained earnings; revenue) stockholders’ d. (1) asset e. (1) asset f. (3) equity (retained earnings; expense) stockholders’ Ex. 1–9 a. Increases assets and increases equity. stockholders’ b. Decreases assets and decreases equity. stockholders’ c. Increases assets and decreases assets. d. Increases assets and increases liabilities. e. Increases assets and increases equity. stockholders’ Ex. 1–10 a. (1) Total assets increased $260,000 ($440,000 $180,000). – (2) No change in liabilities. (3) equity increased $260,000. Stockholders’ b. (1) Total assets decreased $69,000. (2) Total liabilities decreased $69,000. (3) No change in equity. stockholders’ c. No, it is false that a transaction always affects at least two elements (Assets, Liabilities, or Equity) of the accounting equation. Some transactions Stockholders’ affect only one element of the accounting equation. For example, purchasing supplies for cash only affects assets.
Ex. 1–6 a. $456,100 ($118,000 + $338,100) b. $355,010 ($766,750 – $411,740) c. $2,072,200 ($3,250,300 – $1,178,100) Ex. 1–7 a. $775,000 ($1,250,000 – $475,000) b. $890,000 ($775,000 + $225,000 – $110,000) c. $385,000 ($775,000 – $300,000 – $90,000) d. $1,460,000 ($775,000 + $550,000 + $135,000) e. Net income: $350,000 ($1,500,000 – $375,000 – $775,000) Ex. 1–8 a. (2) liability b. (1) asset c. (3) stockholders’ equity (retained earnings; revenue) d. (1) asset e. (1) asset f. (3) stockholders’ equity (retained earnings; expense) Ex. 1–9 a. Increases assets and increases stockholders’ equity. b. Decreases assets and decreases stockholders’ equity. c. Increases assets and decreases assets. d. Increases assets and increases liabilities. e. Increases assets and increases stockholders’ equity. Ex. 1–10 a. (1) Total assets increased $260,000 ($440,000 – $180,000). (2) No change in liabilities. (3) Stockholders’ equity increased $260,000. b. (1) Total assets decreased $69,000. (2) Total liabilities decreased $69,000. (3) No change in stockholders’ equity. c. No, it is false that a transaction always affects at least two elements (Assets, Liabilities, or Stockholders’ Equity) of the accounting equation. Some transactions affect only one element of the accounting equation. For example, purchasing supplies for cash only affects assets.