ANSWERS TO GROUP A PROBLEMS PA2-1 Req. 1 Assets = Liabilities + Shareholders' Equity Notes Contributed Retained Cash Equipment Building Payable Capital Earnings (a) +100,000 = +100,000 (b) +120,000 = +120,000 (c) +200,000 = –200,000 (d) +30,000 = +27,000 –3,000 (e) = –3,000 –3,000 (f) +10,000 = +5,000 –5,000 (g) No effect = +12,000 +37,000 +200,000 = +149,000 +100,000 Changes + $249,000 + $149,000 +$100,000
ANSWERS TO GROUP A PROBLEMS PA2-1 Req. 1 Assets = Liabilities + Shareholders' Equity Cash Equipment Building Notes Payable Contributed Capital Retained Earnings (a) +100,000 = +100,000 (b) +120,000 = +120,000 (c) –200,000 +200,000 = (d) –3,000 +30,000 = +27,000 (e) –3,000 = –3,000 (f) –5,000 +10,000 = +5,000 (g) No effect = +12,000 +37,000 +200,000 = +149,000 +100,000 Changes + $249,000 + $149,000 +$100,000