Accounting Balance Sheet Exercises PDF

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Accounting Balance Sheet Exercises and Answers...

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BBI2O1 – Balance Sheet Activities 1. Identify each of the following items by writing the term asset, liability or owner’s equity in the space provided. a. A truck owned by the business

_______asset___________________

b. A bank loan

__________liability________________

c. A building

______asset____________________

d. A mortgage

______liabilities____________________

e. Office supplies

_______asset___________________

f. Assets minus liabilities

_______owner’s equity________________

g. A debt to a finance company

________liability__________________

h. Money owed to our business

_______asset___________________

i. We owe money to others

_______liability_______________

j. Cash on hand

______asset____________________

k. A computer

_______asset___________________

2. The basic accounting equation (A=L + OE), which means that assets are equal to liabilities plus owner’s equity, can be rearranged in several ways to find whatever part of the equation is unknown. Using this equation, calculate the unknown item in each of the following questions. a. If total assets are $209,436.00 and total liabilities are $114,272.00, how much is owner’s equity? $209,436.00-$114,272.00=$95164 If total liabilities are $102,500.00 and owner’s equity is $93,000.00, what is the total assets figure for the business? 102,500.00+93,000.00= $195,500.00 If owner’s equity is $148,272.00 and the total assets are $479,195.00, what amount represents total liabilities? $479,195.00-148,272.00= $330,923.00

3. Most people have assets. List six assets that you own that are worth money. Beside each asset list its value.

Asset a) Computer b)cell phone c) Tablet d)cash e)xbox f)watch

Value $1000 $300 $600 $105 $130 $40

4. List three debts (liabilities) that you have owed in the last few weeks. Beside each one, list the amount of the debt. If you are debt free, invent three debts of reasonable amounts.

Debts Owed to a) Daisy b) Ken c)Bank loan

Amount $5 $17 $30

5. Prepare a Balance Sheet for Arts Associates, using today’s date. Assets include cash $8,000.00, studio equipment $32,000.00 and building $65,000.00. Supplies $900 Liabilities include two separate suppliers: Photo Services Ltd. $3,000.00, and Kodak Ltd. $4,850.00, Bank loan $800 Remember to calculate the owner’s equity for the owner, Robert Zimmerman. Art Associates Balancing Sheet May 23rd, 2018 Assets Cash Supplies

$8,000.00 900.00

Liabilities Accounts payable Photo Services Ltd

3,000.00

Studio Equipment Building TOTAL ASSETS

32,000.00 65,000.00 105,900.00

Kodak Ltd Bank Loan TOTAL LIABILITIES

4,850.00 800.00 8650.00

Owner’s Equity R. Zimmerman, capital

97250.00

Total Liabilities & Owner’s Equity

101,400.00

6. Prepare a Balance Sheet for Kingston’s Pharmacy using today’s date. Assets include cash $10,410.00, medical supplies $84,175.00, furniture $19,610.00, equipment $32,420.00 and building $125,000.00. Liabilities include a bank loan of $5,400.00 and accounts payable to Chemical Supply Co. of $5,810.00, Mortgage payable $20,000 The owner is Jenny Furr. Kingston Pharmacy Balancing Sheet May 23rd, 2018 Assets cash medical supplies

$10 410 84 175

furniture equipment building Total Assets

19 610 32 420 125 000 271,615

Liabilities bank loan accounts payable (chemical supply co) mortgage payable Total Liabilities

20 000 21,310.00

Owners Equity J. Furr, equity

250,305.00

Total Liabilities & owner's equity

$5400 5 810

271,615.00...