1. Use the accounting equation to answer each question that follows. Show any calculations you make.
a. The assets of Master Company are $380,000 and the owner’s equity is $155,000. What is the amount of the liabilities?
b. The liabilities and owner’s equity of Lee Company are $65,000 and $79,500 respectively. What is the amount of the assets?
c. The liabilities of Hake Company equal one-third of the total assets, and owner’s equity is $180,000. What is the amount of the liabilities?
d. At the beginning of the year, Jarvis Company’s assets were $310,000, and its owner’s equity was $150,000. During the year, assets increased by $45,000 and liabilities decreased by $22,500. What is the owner’s equity at the end of the year?
2. Complete the table to indicate whether each of the following accounts is an asset, a liability, equity, revenue, or an expense. Also, indicate whether the normal balance of each account is a debit or a credit.
Account Name Account Type Normal Balance
a. Accounts Payable
d. Fees Earned
e. Supplies Expense
f. Accounts Receivable
g. Unearned Revenue