5

Assets Liabilities and Owner's Equity

Cash 60,000 Accounts Payable 100,000
Accounts Receivable 10,000 Notes Payable 250,000
Car 120,000 Red, Capital 250,000
Equipment 130,000 600,000
320,000
d Owner's Equity
100,000
250,000
250,000
 11
Transactions
Ariel Received a retirement pay of 1,000,000 cash and invested half of this to put up his business
From the remaining pension of 500,000, he got a car for his own use, 750,000 and issued a note for the balance
He hired a cook, a cashier and a server for a monthly salary of 5,000 each worker
He bought cooking equipment and paid 350,000
He bought office equipment from Da best for 125,000 on credit
he paid half of the account due to Dabest
He took home 5,000 cash and bought supplies

cash 1000000-15000-350000-62500-5000= 567500

eqiupment 350000+125000= 475000
supplies= 5000
 Assets Liabilities Owner's Equity
1,000,000,000 N/A 1,000,000,000
N/A 250,000 -500,000
-15,000 N/A -15,000
(+ and -) 350,000 N/A N/A
125,000+ 125,000 N/A
-62,500 -62,500 N/A
(- and + )5,000 N/A N/A

1047500 312500 485000

797500
1047500
250000
 17
Date Assets
Cash Furnitures and Fixtures Car Equipment Supplies
Apr-01 300,000
Apr-02 -50,000 100,000
Apr-10 300,000
Apr-15 -100,000 100,000
Apr-20 -25,000 25,000
Apr-23 -37,500 75,000
Apr-25 -500
Apr-30 -10,000
77,000 100,000 75,000 400,000 25,000
677,000
 Liabilities Owner's Equity
Accounts Payable Notes Payable Narvaez, capital Narvaez, drawings
300,000
50,000
300,000

37,500
-500
-10,000
337,500 40,000 0 299,500
677,000
 7
a Completeness
b reliability
c faithful representation
d reliability