ACCOUNTING EXERCISES
(I)
For the following three scenarios below calculate total assets, liabilities
or Owner’s Equity using the standard “Accounting Equation.”
1. Y. Yankem, Dentist has total assets of $5 000 and total liabilities of
$2 375. What is the Owner’s Equity?
2. B. Simpson, Accountant has $25 000 in her capital account. She has only one
debt to pay off, a loan of $2 500. What are her total assets?
3. P. Lombardo, Interior Designer has $17 619 in his capital account and has assets
totaling $33 782. What are his total liabilities?
(II)
In the spaces provided, identify each of the following as an
Asset (A), Liability (L), or Owner’s Equity (OE):
_____
a) an amount of money owed to the business by a customer
_____
b) the owner’s original investment
_____
c) office furniture
_____
d) building and land
_____
e) bank loan
_____
f) mortgage on land and building
_____
g) delivery truck
_____
h) an amount owed by the business to a supplier
_____
i) inventory
D:\401252788.doc
Page 1 of 1