SM.pdf Chapter_02_H&P_22e.pdf Heintz, 22e_Ch02_IRM.pdf Heintz22e_Ch02_SM_Final.pdf Heintz22e_Comp Prob 1_SM Part 1_Final.pdf Chapter Analyzing Transactions: The Accounting Equation CHAPTER REVIEW QUESTIONS 10 accounting equation business entity asset liability account payable owner’s equity business entity Owner’s Equity Liabilities Owner’s Equity 11 12 13 14 15 16 17 18 19 expense net income net loss fiscal year drawing income statement statement of owner’s equity balance sheet liquidity EXERCISES Exercise (a) $24,000 (b) $17,000 (c) $40,000 Exercise (a) $90,000 (c) $60,000 (e) $50,000 (b) $35,000 (d) $55,000 (f) $10,000 (b) $2,880 net income Exercise Net income = $7,000 Exercise Owner’s equity = $13,120 Exercise (a) $16,000 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter Exercise ASSETS (a) Bal (b) 15,000 15,000 (4,000) 4,000 15,000 9,000 24,000 (2,000) 22,000 Bal (c) Bal (d) Bal = LIABILITIES OWNER’S EQUITY + 15,000 15,000 15,000 9,000 9,000 (2,000) 7,000 = 15,000 + 15,000 Exercise ASSETS = LIABILITIES + (Items Owned) (Amts Owed) OWNER’S EQUITY (Owner’s Investment) (Earnings) Cash Accounts Payable Bal 28,000 8,000 (a) 4,000 (b) (1,200) 1,200 (c) (200) 200 (d) (600) Bal Glen Ross, Glen Ross, Capital – Drawing + Revenues – Expenses Description 20,000 4,000 Service Fees Rent Exp Utilities Exp 600 30,000 = 30,000 = 8,000 + 20,000 − 600 + 4,000 − 1,400 30,000 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter Analyzing Transactions: The Accounting Equation Exercise ASSETS (Items Owned) = LIABILITIES + OWNER’S EQUITY (Amts Owed) (Owner’s Investment) (Earnings) (a) Office Accounts Cash + Equipment = Payable 10,000 (b) 5,500 (c) J Moore, J Moore, + Capital – Drawing + Revenues – Expenses 10,000 5,500 900 (d) (6,000) (e) 1,500 900 Service Fees 1,500 Service Fees 6,000 (f) (800) 800 (g) (75) 75 (h) (100) (i) (500) Bal 4,925 + 16,425 Description Rent Exp Phone Exp (100) 500 11,500 = 5,400 + 10,000 − = 500 + 2,400 − 875 16,425 Total assets $ 16,425 Total liabilities $ 5,400 Owner’s equity $ 11,025 Owner’s equity in excess of original investment $ 1,025 Total revenues $ 2,400 Total expenses $ Net income $ 1,525 875 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter Exercise Judith Moore Enterprises Income Statement For Month Ended July 31, 20-Revenue: Service fees $2,400 Expenses: Rent expense $800 Phone expense 75 Total expenses 875 Net income $1,525 Exercise 10 Judith Moore Enterprises Statement of Owner’s Equity For Month Ended July 31, 20-Judith Moore, capital, July 1, 20 $10,000 Investment in July 10,000 Total investment Net income for July Less withdrawals for July Increase in capital Judith Moore, capital, July 31, 20 $10,000 $1,525 500 1,025 $11,025 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter Analyzing Transactions: The Accounting Equation Exercise 11 Judith Moore Enterprises Balance Sheet July 31, 20-ASSETS Cash Office equipment LIABILITIES $ 4,925 Accounts payable $ 5,400 11,500 OWNER’S EQUITY Judith Moore, capital Total assets $16,425 Total liabilities and owner’s equity 11,025 $16,425 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter PROBLEMS Problem 12 ASSETS = LIABILITIES $18,800 $23,400 $21,900 Net income for January = $2,100 Net loss for February = $300 + OWNER’S EQUITY $4,700 $7,200 $6,000 $14,100 $16,200 $15,900 Problem 13 ASSETS = LIABILITIES + (Amts Owed) (Items Owned) Cash (a) + Office Equip (Owner’s Investment) (Earnings) Prepaid Accounts J Moore, J Moore, + Insur = Payable + Capital – Drawing + Revenues – Expenses 12,000 (b) OWNER’S EQUITY Description 12,000 7,500 7,500 (c) (800) (d) 700 (e) (600) 600 Rent Exp (f) (150) 150 Wages Exp (g) (200) (h) (3,000) (i) (100) Bal 7,850 + 800 700 Cons Fees 200 (3,000) 100 8,300 + 16,350 200 = = 4,500 + 12,000 – 100 + 700 – 750 16,350 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter Analyzing Transactions: The Accounting Equation Problem 13 (Concluded) Total assets Total liabilities Owner’s equity Change in owner’s equity from original investment Total revenues Total expenses Net income (loss) $ 16,350 $ 4,500 $ 11,850 $ (150) $ 700 $ 750 $ (50) Problem 14 Susan Cole Consulting Services Income Statement For Month Ended October 31, 20— Revenue: Consulting fees $700) Expenses: Rent expense Wages expense Total expenses Net income (loss) $600 150 750) $ (50) © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 Chapter Problem 15 Susan Cole Consulting Services Statement of Owner’s Equity For Month Ended October 31, 20-Susan Cole, capital, October 1, 20 $12,000) Investment in October 12,000) Total investment $12,000) Less: Net loss for October $ 50 Withdrawals for October 100 Decrease in capital (150) Susan Cole, capital, October 31, 20 $11,850) Problem 16 Susan Cole Consulting Services Balance Sheet October 31, 20-ASSETS Cash Prepaid insurance Office equipment LIABILITIES $ 7,850 Accounts payable 200 8,300 OWNER’S EQUITY Susan Cole, capital Total assets $ 4,500 $16,350 Total liabilities and owner’s equity 11,850 $16,350 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part Chapter Analyzing Transactions: The Accounting Equation 11 Problem 17 Cash (a) ASSETS = LIABILITIES + (Items Owned) (Amts Owed) (Owner’s Investment) (Earnings) Accounts Office Accounts S Cassady, S Cassady, + Receivable + Supplies = Payable + Capital – Drawing + Revenues – Expenses 10,000 (200) 200 (c) (400) 800 (d) 300 (e) (600) (f) (100) (g) 200 (h) (200) (i) 200 9,200 + Description 10,000 (b) Bal OWNER’S EQUITY 400 300 Typing Fees 600 Rent Exp 100 400 600 Typing Fees (200) (200) 200 10,400 + 1,000 = = 200 + 10,000 – 100 + 900 – 600 10,400 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 222 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) GENERAL JOURNAL DATE 20-1 Apr DESCRIPTION Cash PAGE POST REF 101 Registration Fees DEBIT CREDIT 38 0 00 401 38 0 00 Collected registration fees 3 10 Food Supplies Accounts Payable 144 0 00 202 0 00 Purchased food supplies on account from Acme Super Market 10 11 10 Wages Expense 511 Cash 101 10 0 00 10 10 0 00 Paid wages to guides 12 12 13 14 15 16 13 14 Cash 101 Registration Fees 30 0 00 401 14 30 0 00 Collected registration fees 19 15 16 17 18 11 17 16 Food Supplies Accounts Payable 144 0 00 202 18 0 00 19 20 Purchased food supplies on account 20 21 from Acme Super Market 21 22 23 24 25 22 17 Wages Expense 511 Cash 101 10 0 00 23 10 0 00 Paid wages to guides 25 26 27 28 29 24 26 18 Postage Expense Cash Paid postage 536 101 00 27 00 28 29 30 30 31 31 32 32 33 33 34 34 35 35 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 223 Comprehensive Problem (Continued) GENERAL JOURNAL DATE 20-1 Apr 21 DESCRIPTION Cash PAGE POST REF 101 Registration Fees DEBIT CREDIT 35 0 00 401 35 0 00 Collected registration fees 3 24 Food Supplies Accounts Payable 144 0 00 202 0 00 Purchased food supplies on account from Acme Super Market 10 11 24 Wages Expense 511 Cash 101 10 0 00 10 10 0 00 Paid wages to guides 12 12 13 14 15 16 13 28 Cash 101 Registration Fees 32 0 00 401 14 32 0 00 Collected registration fees 19 20 17 29 Wages Expense 511 Cash 101 10 0 00 18 10 0 00 Paid wages to guides 23 19 20 21 22 15 16 17 18 11 21 30 Food Supplies Accounts Payable 144 0 00 202 22 0 00 23 24 Purchased food supplies on account 24 25 from Acme Super Market 25 26 27 28 26 30 Accounts Payable Cash 202 101 32 0 00 27 32 0 00 28 29 Made payment on account to 29 30 Acme Super Market 30 31 31 32 32 33 33 34 34 35 35 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 224 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) GENERAL JOURNAL DATE POST REF DESCRIPTION 20-1 Apr 30 Utilities Expense 533 Cash PAGE DEBIT CREDIT 0 00 101 0 00 Paid utility bill 3 4 30 Phone Expense 525 Cash 101 0 00 0 00 Paid phone bill 7 8 30 Bob Night, Drawing 312 Cash 10 0 00 101 0 00 Owner’s withdrawal 11 10 11 2., 6., and 11 GENERAL LEDGER Cash ACCOUNT DATE 20 Apr ACCOUNT NO ITEM POST REF DEBIT CREDIT 90 0 00 101 BALANCE DEBIT J1 J1 0 00 81 0 00 J1 40 0 00 41 0 00 J1 35 0 00 76 0 00 J2 38 0 00 114 0 00 10 J2 14 J2 17 J2 10 0 00 125 0 00 18 J2 00 124 00 21 J3 24 J3 28 J3 29 J3 10 0 00 172 5 00 30 J3 32 0 00 139 00 30 J4 0 00 137 00 30 J4 0 00 136 00 30 J4 0 00 130 00 CREDIT 90 0 00 10 0 00 104 0 00 30 0 00 35 0 00 135 0 00 160 5 00 10 0 00 150 5 00 32 0 00 182 5 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 225 Comprehensive Problem (Continued) Office Supplies ACCOUNT DATE 20 Apr ITEM BALANCE DEBIT CREDIT 0 00 J5 DEBIT DATE 20 ITEM CREDIT 0 00 0 00 0 00 Food Supplies ACCOUNT ACCOUNT NO POST REF CREDIT DEBIT CREDIT J1 0 00 0 00 10 J2 0 00 15 0 00 16 J2 0 00 24 0 00 24 J3 0 00 32 0 00 30 J3 0 00 38 0 00 30 Adjusting J5 30 0 00 0 00 Prepaid Insurance ACCOUNT DATE 20 Apr ITEM ACCOUNT DATE 20 POST REF BALANCE DEBIT CREDIT 0 00 J5 DEBIT CREDIT 0 00 0 00 0 00 Fishing Boats ITEM 145 ACCOUNT NO J1 30 Adjusting 144 BALANCE DEBIT Apr Apr POST REF J1 30 Adjusting 142 ACCOUNT NO ACCOUNT NO POST REF J1 181 BALANCE DEBIT 60 0 00 CREDIT DEBIT CREDIT 60 0 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 226 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) Accumulated Depreciation—Fishing Boats ACCOUNT DATE 20 ITEM Apr 30 Adjusting DATE 20 ITEM 181.1 BALANCE DEBIT J5 CREDIT DEBIT CREDIT 0 00 0 00 Accounts Payable ACCOUNT ACCOUNT NO POST REF 202 BALANCE DEBIT CREDIT DEBIT CREDIT J1 60 0 00 60 0 00 J1 0 00 67 0 00 J1 0 00 67 0 00 10 J2 0 00 75 0 00 16 J2 0 00 84 0 00 24 J3 0 00 93 0 00 30 J3 0 00 99 0 00 30 J3 Apr 32 0 00 66 0 00 Wages Payable ACCOUNT DATE 20 ITEM Apr 30 Adjusting ACCOUNT NO POST REF DATE 20 ITEM J5 CREDIT DEBIT CREDIT 0 00 0 00 ACCOUNT NO POST REF 219 BALANCE DEBIT Bob Night, Capital ACCOUNT Apr POST REF ACCOUNT NO 311 BALANCE DEBIT CREDIT DEBIT CREDIT J1 90 0 00 90 0 00 30 Closing J6 54 00 144 00 30 Closing J6 0 00 138 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 227 Comprehensive Problem (Continued) Bob Night, Drawing ACCOUNT DATE 20 ITEM Apr 30 ACCOUNT NO POST REF J4 30 Closing BALANCE DEBIT DATE 20 0 00 J6 DEBIT ITEM 0 00 ACCOUNT NO POST REF 30 Closing J5 117 00 30 Closing J6 54 00 CREDIT DEBIT 171 0 00 ITEM CREDIT 171 0 00 54 00 Registration Fees DATE 20 ACCOUNT NO POST REF 313 BALANCE DEBIT J5 ACCOUNT CREDIT 0 00 Apr 30 Closing Apr CREDIT Income Summary ACCOUNT 312 401 BALANCE DEBIT CREDIT DEBIT CREDIT J1 35 0 00 35 0 00 J2 38 0 00 73 0 00 14 J2 30 0 00 104 0 00 21 J3 35 0 00 139 0 00 28 J3 32 0 00 171 0 00 30 Closing J5 171 0 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 228 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) Wages Expense ACCOUNT DATE 20 ITEM ACCOUNT NO POST REF BALANCE DEBIT CREDIT DEBIT CREDIT Apr 10 J2 10 0 00 10 0 00 17 J2 10 0 00 20 0 00 24 J3 10 0 00 30 0 00 29 J3 10 0 00 40 0 00 30 Adjusting J5 0 00 40 0 00 30 Closing J5 40 0 00 Rent Expense ACCOUNT DATE 20 Apr ITEM ACCOUNT NO POST REF J1 30 Closing DATE 20 ITEM CREDIT 40 0 00 J5 Apr 30 Adjusting 30 Closing POST REF J5 DEBIT DATE 20 ITEM 40 0 00 ACCOUNT NO Apr 30 Adjusting 30 Closing J5 J5 523 BALANCE DEBIT CREDIT 0 00 J5 POST REF CREDIT 40 0 00 DEBIT CREDIT 0 00 0 00 Food Supplies Expense ACCOUNT 521 BALANCE DEBIT Office Supplies Expense ACCOUNT 511 ACCOUNT NO 524 BALANCE DEBIT CREDIT 30 0 00 DEBIT CREDIT 30 0 00 30 0 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 229 Comprehensive Problem (Continued) Phone Expense ACCOUNT DATE 20 ITEM ACCOUNT NO POST REF J4 Apr 30 30 Closing BALANCE DEBIT CREDIT 0 00 J5 DEBIT DATE 20 ITEM 0 00 ACCOUNT NO POST REF J4 Apr 30 30 Closing DATE 20 ITEM CREDIT 0 00 J5 DEBIT Apr 30 Adjusting 30 Closing 0 00 0 00 J5 DATE 20 ITEM CREDIT 0 00 J5 DEBIT J2 Apr 18 30 Closing 0 00 0 00 DATE 20 ITEM CREDIT 00 J5 Apr 30 Adjusting 30 Closing POST REF J5 J5 536 BALANCE DEBIT DEBIT CREDIT 00 00 Depreciation Expense—Fishing Boats ACCOUNT CREDIT ACCOUNT NO POST REF 535 BALANCE DEBIT Postage Expense ACCOUNT CREDIT ACCOUNT NO POST REF 533 BALANCE DEBIT Insurance Expense ACCOUNT CREDIT 0 00 Utilities Expense ACCOUNT 525 ACCOUNT NO 542 BALANCE DEBIT CREDIT 0 00 DEBIT CREDIT 0 00 0 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 230 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) and The General’s Favorite Work For the Month Ended ACCOUNT TITLE Cash Office Supplies Food Supplies Prepaid Insurance Fishing Boats Accum Depr.—Fishing Boats Accounts Payable Wages Payable Bob Night, Capital ADJUSTMENTS DEBIT CREDIT TRIAL BALANCE DEBIT CREDIT 130 00 0 00 (a) 38 0 00 (b)30 0 00 0 00 (c) 0 00 60 0 00 (d) 0 00 66 0 00 (e) Bob Night, Drawing 11 Registration Fees 12 Wages Expense 40 0 00 13 Rent Expense 40 0 00 14 0 00 171 0 00 (e) 0 00 Office Supplies Expense (a) 0 00 15 Food Supplies Expense (b)30 0 00 16 Phone Expense 0 00 17 Utilities Expense 0 00 18 Insurance Expense 19 Postage Expense 20 Depr Exp.—Fishing Boats 22 0 00 90 0 00 10 (c) 0 00 00 (d) 0 00 328 0 00 21 0 00 328 0 00 34 0 00 34 0 00 Net Income 23 24 25 26 27 28 29 30 31 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 231 Comprehensive Problem (Continued) Fishing Hole Sheet April 30, 20-ADJUSTED TRIAL BALANCE DEBIT CREDIT INCOME STATEMENT DEBIT CREDIT BALANCE SHEET DEBIT CREDIT 130 00 130 00 1 0 00 0 00 0 00 0 00 0 00 0 00 60 0 00 60 0 00 0 00 0 00 66 0 00 66 0 00 0 00 0 00 90 0 00 90 0 00 0 00 0 00 171 0 00 10 171 0 00 11 40 0 00 40 0 00 12 40 0 00 40 0 00 13 0 00 0 00 14 30 0 00 30 0 00 15 0 00 0 00 16 0 00 0 00 17 0 00 0 00 18 00 00 19 0 00 0 00 20 329 0 00 329 0 00 117 00 171 0 00 212 00 54 00 171 0 00 171 0 00 212 00 158 0 00 21 54 00 22 212 00 23 24 25 26 27 28 29 30 31 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 232 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) The General’s Favorite Fishing Hole Income Statement For Month Ended April 30, 20-Revenues: Registration fees $171,700 Expenses: Wages expense $40,500 Rent expense 40,000 Office supplies expense 400 Food supplies expense 30,700 Phone expense 1,200 Utilities expense 2,000 Insurance expense 1,500 Postage expense 150 Depreciation expense—fishing boats 1,000 Total expenses 117,450 Net income $ 54,250 The General’s Favorite Fishing Hole Statement of Owner’s Equity For Month Ended April 30, 20-Bob Night, capital, April 1, 20 $138,250 Investments during April 90,000 Total investment Net income for April Less withdrawals for April Increase in capital Bob Night, capital, April 30, 20 $ 90,000 $54,250 6,000 48,250 $138,250 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 233 Comprehensive Problem (Continued) The General’s Favorite Fishing Hole Balance Sheet April 30, 20-Assets Current assets: Cash $130,650 Office supplies 100 Food supplies 8,000 Prepaid insurance 7,500 Total current assets $146,250 Property, plant, and equipment: Fishing boats $ 60,000 Less accumulated depreciation 1,000 Total assets 59,000 $205,250 Liabilities Current liabilities: Accounts payable $ 66,500 Wages payable 500 Total current liabilities $ 67,000 Owner’s Equity Bob Night, capital Total liabilities and owner’s equity 138,250 $205,250 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 234 COMPREHENSIVE PROBLEM Comprehensive Problem (Continued) and 10 GENERAL JOURNAL DATE 20-1 Apr DESCRIPTION PAGE POST REF DEBIT CREDIT Adjusting Entries 30 Office Supplies Expense 523 Office Supplies 142 0 00 0 00 4 30 Food Supplies Expense 524 Food Supplies 144 30 0 00 30 0 00 12 30 Insurance Expense Prepaid Insurance 535 0 00 145 0 00 15 30 Depreciation Expense—Fishing Boats Accum Depreciation—Fishing Boats 542 0 00 181.1 11 0 00 30 Wages Expense 511 Wages Payable 0 00 219 14 0 00 Closing Entries 30 Registration Fees Income Summary 17 401 171 0 00 313 18 171 0 00 20 21 15 16 17 19 12 13 16 18 10 13 14 10 11 19 20 30 Income Summary 313 117 00 21 22 Wages Expense 511 40 0 00 22 23 Rent Expense 521 40 0 00 23 24 Office Supplies Expense 523 0 00 24 25 Food Supplies Expense 524 30 0 00 25 26 Phone Expense 525 0 00 26 27 Utilities Expense 533 0 00 27 28 Insurance Expense 535 0 00 28 29 Postage Expense 536 00 29 30 Depreciation Expense—Fishing Boats 542 0 00 30 31 31 32 32 33 33 34 34 35 35 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part COMPREHENSIVE PROBLEM 235 Comprehensive Problem (Concluded) GENERAL JOURNAL DATE 20-1 Apr 30 PAGE POST REF DESCRIPTION Income Summary 313 Bob Night, Capital DEBIT CREDIT 54 00 311 54 00 30 Bob Night, Capital 311 Bob Night, Drawing 0 00 312 0 00 6 7 8 9 12 The General’s Favorite Fishing Hole Post-Closing Trial Balance April 30, 20-ACCOUNT ACCT NO DEBIT BALANCE Cash 101 130 00 Office Supplies 142 0 00 Food Supplies 144 0 00 Prepaid Insurance 145 0 00 Fishing Boats 181 60 0 00 Accumulated Depreciation—Fishing Boats CREDIT BALANCE 181.1 0 00 Accounts Payable 202 66 0 00 Wages Payable 219 0 00 Bob Night, Capital 311 138 00 206 00 206 00 © 2017 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ...Chapter Analyzing Transactions: The Accounting Equation CHAPTER REVIEW QUESTIONS 10 accounting equation business entity asset liability account payable... liabilities Nonbusiness assets and liabilities are not included in the business entity’s accounting records If the owner invests money or other assets in the business, the investment is now reclassified... website, in whole or in part Chapter Analyzing Transactions: The Accounting Equation Exercise 11 Judith Moore Enterprises Balance Sheet July 31, 20-ASSETS Cash Office equipment LIABILITIES $ 4,925