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1035 - Balance Sheet ExercisesName

This document contains exercises involving balance sheets, including: 1) Completing tables with asset, liability, and owner's equity values to satisfy the accounting equation. 2) Calculating percentages of assets for a sample balance sheet. 3) Calculating dollar and percentage changes between years on a comparative balance sheet for a vacuum repair shop.

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76 views

1035 - Balance Sheet ExercisesName

This document contains exercises involving balance sheets, including: 1) Completing tables with asset, liability, and owner's equity values to satisfy the accounting equation. 2) Calculating percentages of assets for a sample balance sheet. 3) Calculating dollar and percentage changes between years on a comparative balance sheet for a vacuum repair shop.

Uploaded by

Ringle Job
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Balance Sheet Exercises Name _____________________

A. The accounting equation can be expressed as: Assets minus Liabilities equals
Owner’s Equity. In other words, Own minus Owe equals Worth. Complete the table
below:

Assets Liabilities Owner’s Equity


$ 2,397 $ 1,457 1.
$ 12,629 $ 9,462 2.
$ 50,388 $ 5,294 3.
4. $62,300 $ 2,937
5. $ 4,543 $94,123
$ 8,832 6. $ 8,000
$ 4,765 7. $ 400
$ 120,654 $38,621 8.

B. Complete the blanks below. Calculate the percents as a fraction of assets rounded to
two decimal places.

Bill's Bath Shoppe


Balance Sheet
31-Dec-10

Assets Amount Percent


Cash $ 5,400.00 13.
Inventory $ 3,200.00 14.
Supplies $ 1,298.00 15.
Prepaid Insurance $ 300.00 16.
Office Equipment $ 10,400.00 17.
Building $ 20,800.00 18.

Total Assets 9. 19.

Liabilities
Accounts Payable $ 500.00 20.
Notes Payable $ 1,800.00 21.
Mortgage Payable $ 13,400.00 22.

Total Liabilities 10. 23.

Owner's Equity

Bill Boogie, Capital 11. 24.


Total Liabilities and Owner's Equity 12. 25.

1
C. A comparative balance sheet is used to show both the absolute and percentage
changes for a business between years. Find the amount of change in dollars and the
percentage change for the balance sheet below.

Juan's Vacuum Repair Shop


Comparative Balance Sheet
31-Dec-10
Amount of Percent
Assets Year 2 Year 1 Change Of Change
Cash $ 15,456.00 $ 14,258.00 26. 39.
Inventory $ 6,398.00 $ 7,238.00 27. 40.
Supplies $ 2,347.00 $ 1,500.00 28. 41.
Prepaid Insurance $ 1,000.00 $ 1,000.00 29. 42.
Office Equipment $ 20,500.00 $ 19,500.00 30. 43.

Building $ 100,000.00 $102,000.00 31. 44.

Total Assets $ 145,701.00 $145,496.00 32. 45.

Liabilities
Accounts Payable $ 35,000.00 $ 20,200.00 33. 46.
Notes Payable $ 23,500.00 $ 20,200.00 34. 47.
Mortgage Payable $ 30,000.00 $ 29,500.00 35. 48.

Total Liabilities $ 88,500.00 $ 69,900.00 36. 49.

Owner's Equity

Bill Boogie, Capital $ 57,201.00 $ 75,596.00 37. 50.

Total Liabilities and Owner's Equity $ 145,701.00 $145,496.00 38. 51.

D. Is this company a good investment? Why or why not? Be sure to describe which
aspects on the balance sheet aided you in your decision making.

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