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Homework answers / question archive / Annie Rasmussen is the owner and operator of Go44, a motivational consulting organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers, business
Annie Rasmussen is the owner and operator of Go44, a motivational consulting organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers, business. At the end of its An information system that provides reports to users about the economic activities and condition of a business accounting period, December 31, 2015, Go44 has the resources owned by a business with assets of $720,000 and the rights of creditors that represent debts of the business's liabilities of $180,000. Using the accounting equation and considering each case independently, determine the following amounts:
a. Annie Rasmussen, capital, as of December 31, 2015.
b. Annie Rasmussen, capital, as of December 31, 2016, assuming that assets increased by $96,500 and liabilities increased by $30,000 during 2016.
c. Annie Rasmussen, capital, as of December 31, 2016, assuming that assets decreased by $168,000 and liabilities increased by $15,000 during 2016.
d. Annie Rasmussen, capital, as of December 31, 2016, assuming that assets increased by $175,000 and liabilities decreased by $18,000 during 2016.
e. The amount by which revenues exceed expenses.Net income (or the amount by which expenses exceed revenues.net loss) during 2016, assuming that as of December 31, 2016, assets were $880,000, liabilities were $220,000, and there were no additional investments or withdrawals.
a.
| Particulars | Amount | |
|---|---|---|
| Total assets | 720,000 | |
| Less: | Total liabilities | 180,000 |
| Equity | 540,000 |
b. Total assets = 720,000 + 96,500
Total assets = $816,500
Total liabilities = 180,000 + 30,000
Total liabilities = $210,000
| Particulars | Amount | |
|---|---|---|
| Total assets | 816,500 | |
| Less: | Total liabilities | 210,000 |
| Equity | 606,500 |
c. Total assets = 720,000 - 168,000
Total assets = $552,000
Total liabilities = 180,000 + 15,000
Total liabilities = $195,000
| Particulars | Amount | |
|---|---|---|
| Total assets | 552,000 | |
| Less: | Total liabilities | 195,000 |
| Equity | 357,000 |
d. Total assets = 720,000 + 175,000
Total assets = $895,000
Total liabilities = 180,000 - 18,000
Total liabilities = $162,000
| Particulars | Amount | |
|---|---|---|
| Total assets | 895,000 | |
| Less: | Total liabilities | 162,000 |
| Equity | 733,000 |
e.
| Particulars | Amount | |
|---|---|---|
| Total assets | 880,000 | |
| Less: | Total liabilities | 220,000 |
| Equity | 660,000 |
| Particulars | Amount | |
|---|---|---|
| Closing capital | 660,000 | |
| Less: | Opening capital | 540,000 |
| Net income during 2016 | 120,000 |
