Total assets of Keller Financial Co. equal $50,000 and its equity is $20,000.
What is the amount of it’s liabilities?
Total assets of Echo Valley Co. equal $25,000 and its liabilities and equity
amounts are equal. What is the amount of it’s liabilities? What is the
amount of its equity?
Use the accounting equation to compute the missing financial statement
amounts a, b, and c.
Company Assets= Liabilities + Owner’s Equity
1 $40,000 (a) $10,000
2 (b) $60,000 $20,000
3 $110,000 $20,000 (c)
Indicate in which financial statement each item would most likely appear:
income statement (I), Balance Sheet (B), Statement of Retained Earnings
(E), or Statement of Cash Flows (CF).
a. Assets d. Retained Earnings g. Total liabilities and equity
b. Revenues e. Dividends h. Cash from operating activ’s
c. Liabilities f. Costs & expenses i. Net decr.(incr.) in cash
The following describe several different business organizations. Determine
whether the description refers to a sole proprietorship, partnership, or
a. Ownership of Cola Company is divided into 1,000 shares of stock.
b. Trimark is owned by Sarah Gates, who is personally liable for the debts
of the business.
c. Jerry Staley and Susan Morris own Financial Services, a financial
services provider. Neither Staley nor Morris has personal responsibility
for the debts of Financial Services.
d. Nancy Case and Frank Pruitt own Get It There, a courier service. Both
are personally liable for the debts of the business.
e. WSP Services does not have separate legal existence apart from the one
person who owns it.
f. BioLife Enterprises does not pay taxes and has one owner.
g. Tampa Trade pays its own taxes and has two owners.