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?
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
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