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Accounting Equation Worksheet Student

The second half of the document describes how different business transactions would affect accounting records. For each transaction listed, it specifies the accounts impacted, whether the account increases or decreases, and the amount of the adjustment. The transactions cover items like investments, expenses, revenues, and payments between the business and its owners or customers.

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Alexis Carranza
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705 views2 pages

Accounting Equation Worksheet Student

The second half of the document describes how different business transactions would affect accounting records. For each transaction listed, it specifies the accounts impacted, whether the account increases or decreases, and the amount of the adjustment. The transactions cover items like investments, expenses, revenues, and payments between the business and its owners or customers.

Uploaded by

Alexis Carranza
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Name: Alexis Arturo Carranza Leal Date: 10/07/2020

Period: _4 period_

The Accounting Equation


ASSETS = LIABILITIES + OWNER’S EQUITY

Assets – Anything of value that is owned by a business.

Examples:

Equity – financial rights to the assets of a business.

1. Liabilities – an amount owed by a business (debts)

2. Owner’s Equity – the owner’s claims to the assets of a business 4 types of


accounts affect owner’s equity:
• Capital – owner’s investment
• Drawing – withdrawal of assets for personal use
• Revenue – Increase in OE resulting from the sale of goods or services
• Expenses – Decrease in OE resulting from normal operation of a business

ASSETS = EQUITIES

$45,000 building $30,000 loan $15,000 investment


ASSETS LIABILITIES OWNER’S EQUITY

Instructions: For each problem below, fill in the missing number to make the accounting equation
balance.

Assets = Liabilities + Owner’s Equity

1. $17,000 = $7,000 + $10,000

2. 10,000 = $3,000 + $ 7,000

3. $26,000 = 9,000 + 17,000


4. If a business has invested $50,000 in an asset that cost $75,000, what is the amount of its
liability?
$25,000

5. In accounting there are two kinds of equity: LIABILITIES and owner’s equity
6. If a business has liabilities of $60,000 and assets of $218,000, what is the amount of the
owner’s equity?
$158,000

Instructions: For each transaction listed below, write what accounts would be affected, what
type of account it is (asset, liability, capital, drawing, revenue, expense), whether the account
would increase or decrease, and by how much.
ACCOUNTS AFFECTED ACCOUNT +
TRANSACTION AMOUNT
CLASSIFICATION –
1. Received cash from Peter Smith, Cash Asset + $2,000.00.
owner, as an investment, $2,000.00. Peter Smith, Capital Owner’s Equity + $2,000.00.
Prepaid Insurance Asset + $600.00
2. Paid cash for insurance, $600.00.
Cash Asset - $600.00
3. Bought supplies on account from Supplies Asset + $100.00
Swan’s Supply Company, $100.00. Acct Payable Liability + $100.00
Supplies Asset + $500.00
4. Paid cash for supplies, $500.00.
Cash Asset - $500.00
Paid cash on account to York Company, Acct Payable Liability - $300.00
$300.00. Cash Asset - $300.00
Rent Expense Owner’s Equity - $300.00
5. Paid cash for rent, $300.00.
Cash Asset - $300.00
6. Paid cash to Peter Smith, owner, for Owner’s Owner’s Equity - $150.00
personal use, $150.00. Cash Asset - $150.00
Cash Asset + $800.00
Received cash from sales, $800.00.
Revenue Owner’s Equity + $800.00
Paid cash for equipment repairs, Repairs Expense Owner’s Equity - $100.00
$100.00. Cash Asset - $100.00
7. Sold services on account to Lisa Lee, Acct Receivable Asset + $400.00
$400.00. Revenue Owner’s Equity + $400.00
Paid cash for charitable contributions, Contributions Expense Owner’s Equity - $35.00
$35.00. Cash Asset - $35.00
Received cash on account from Lisa Lee, Cash Asset + $300.00
$300.00. Acct Receivable Asset - $300.00

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