Accounting Exercises

Norman Ulrich is the owner of Metropolitan Cartage Company in Halifax, Nova Scotia.
His personal and business assets are listed below.
a) Separate the amount list below into the two columns provided.
b) Calculate the total assets and the total liabilities in each column.
c) Calculate Norm Ulrichs personal net worth and his equity in Metropolitan Cartage Company.
Assets
His Canada Savings Bonds
Accounts Receivable
Land
Personal Automobile
Business Bank Balance
Home Furniture and Appliances
Trucks and Equipment
Owner purchased a second house for rental purposes
Buildings
Office Equipment
Personal Bank Balance
Supplies
House and Lot

Amount
$ 10 000
22 000
30 000
9 000
3 150
8 250
84 000
105 000
120 000
24 000
2 860
8 250
86 500

Total Assets
Liabilities
Accounts Payable
Bank Loan on Office Equipment
Mortgage on House and Lot
Mortgage on Building
Mortgage on Rental House
Personal debt to his father
Total Liabilities

Business

Personal
10,000

22,000
30,000
9000
3150
8250
84,000
105,000
120,000
24,000
2860
8250
86,500
291,400

221,610

Amount
$ 5 500
9 200
55 000
65 000
75 000

Business Personal
5500
9200
55,000
65,000
75,000

10 000

10,000
79,700

Owners Equity

Business

N. Ulrich, Capital

211,700

140,000
Personal
81,610

Classify each of the following as an asset (A) or a liability (L) of ABC Company.
a) Accounts receivable
A________
b) Unpaid telephone bill
L________
c) Canada Savings Bonds
A________
d) Bank loan
L________
e) Amount owed to C. Evans
L________
f) Office furniture
L________
g) An amount owed by J. Draper A________
h) Accounts payable
L________
i) Money in the bank
A________
j) Supplies
L________

On December 31, 20-1, A. Silvers accounting equation was as follows:

Assets (120 000) Liabilities (50 000) = Equity ($70 000)
a) If, during 20-2, the assets increased by $90 000 and the liabilities increased by $20 000, calculate
the owners equity at December 31, 20-2. Show your calculations.
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
b) If a companys liabilities increase by $25 000 and its equity decreases by $5 000, what change
occurs in the assets? Show your calculations.
____________________________________________________________________________________
____________________________________________________________________________________

a) Assets 120,000+90,000=210,000
Liability 50,000+20,000=70,000

Assets-Liability=Equity
210,000-70,000=140,000

Therefore by December 31, 20-2 the owners equity will be $140,000

b) Assets-Liability=Equity
A-25,000=5000
20,000-25,000=5000

Therefore the assets increased by $20,000