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

Business
22000

30000
9000
3150
8250
84000
105000
120000
24000
2860
8250
86500
261400

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

Personal
10000

Business

251610
Personal
5500

9200
55000
65000
75000

10 000

10000
74200

145500

Total Liabilities
Owners Equity
N. Ulrich, Capital

Business
187200

Personal
106110

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
A
g) An amount owed by J. Draper
A
h) Accounts payable
L
i) Money in the bank
A
j) Supplies
A

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.
70000 + (90000 20000)
70000 + 70000
$140000
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.
(-50000 25000) + 120000 + A = (70000 5000)
-75000 + 120000 + A = 65000
45000 + A = 65000
A = 65000 45000
A = 20000
The assets increased by $20000