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    5 +The+Balance+Sheet-+Practice+Questions+

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    Ja Rah
    The document provides practice questions about identifying items on a balance sheet as assets, liabilities, or owner's equity. It also includes questions about using the accounting equation to calculate unknown values in the balance sheet and preparing sample balance sheets for two businesses.

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    5 +The+Balance+Sheet-+Practice+Questions+

    Uploaded by

    Ja Rah
    671 views2 pages
    The document provides practice questions about identifying items on a balance sheet as assets, liabilities, or owner's equity. It also includes questions about using the accounting equation to calculate unknown values in the balance sheet and preparing sample balance sheets for two businesses.

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    5.+The+Balance+Sheet-+Practice+Questions+(4)

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    The document provides practice questions about identifying items on a balance sheet as assets, liabilities, or owner's equity. It also includes questions about using the accounting equation to calculate unknown values in the balance sheet and preparing sample balance sheets for two businesses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    671 views2 pages

    5 +The+Balance+Sheet-+Practice+Questions+

    Uploaded by

    Ja Rah
    The document provides practice questions about identifying items on a balance sheet as assets, liabilities, or owner's equity. It also includes questions about using the accounting equation to calculate unknown values in the balance sheet and preparing sample balance sheets for two businesses.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    The Balance Sheet

    Practice questions
    1. Identify each of the following items by writing one of the words – ASSET, LIABILITY, or
    OWNER’S EQUITY – in the space provided.

    a. A truck which the business owns __________________

    b. A bank loan __________________

    c. A building __________________

    d. A mortgage __________________

    e. Office supplies __________________

    f. Assets minus liabilities __________________

    g. A debt to a finance company __________________

    h. Someone owes our company money __________________

    i. Our company owes someone money __________________

    j. Cash on hand __________________

    k. Equipment __________________

    l. The difference between total assets and total liabilities __________________

    2. The fundamental accounting equation (A = L + OE) which means assets equal to liabilities
    plus owner’s equity, can be rearranged in several ways to find whatever part is unknown.
    Using this equation, calculate the unknown item in each of the following questions.

    a. If assets are $209 436 and liabilities are $114 272, how much is owner’s equity?

    b. If liabilities are $102 500 and equity is $93 000, what is the value of the company’s
    assets?

    c. If equity is $148 272 and total assets are $479 195, what amount represents total
    liabilities?
    3. Prepare a balance sheet for Kingston’s Pharmacy using today’s date. Assets include cash $10 410,
    medical supplies $84 175, furniture $19 610, equipment $38 420, and building $125 000.
    Liabilities include a bank loan $25 400 and a debt to Chemical Supply Co. of $5 810. The owner is
    Frank Wallace.

    4. Prepare a balance sheet for the Colonnade Restaurant, owned by Carman Pasquale, dated January
    31, 20—. Assets include building $154 000, equipment $28 500, furniture $34 600, inventory $16
    900, and cash $12 500. Liabilities include mortgage $60 000, Central Wholesales $9 450, and
    bank loan $10 000. Note that in this question, both the assets and the liabilities must be
    rearranged. The liabilities are placed in the order of the need to be paid – accounts payable first
    and mortgage last.

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