HW3

I. Indicate how the following given accounts would be classified.

Place checkmarks under the proper column to indicate your answer.

Account Title Asset Liability Other

a. Accounts Receivable ✓
b. Precollected Rent Income ✓
c. Notes Receivable ✓
d. Sales Revenue
e. Merchandise Inventory ✓
f. Cash on Hand ✓
g. Provision for income tax ✓
h. Unearned Revenues ✓
i. Prepaid Advertising ✓
j. Rent Payable ✓
k. Accrued revenue receivable ✓
l. Revenue from services Revenue
m. Mortage Payable ✓
n. Machinery and Equipment ✓
o. Investment in stock ✓
p. Notes Payable ✓
q. Interest expense Expense
r. Loans payable ✓
s. Prepaid rent ✓
t. Accrued expense payable ✓
u. Expired insurance Expense
v. Unexpired Insurance ✓
w. Taxes Payable ✓
x. Julio Moreno, Capital Capital
y. Accounts Payable ✓

II. For each of the given cases, compute for the

unknown.

Case1 Case2 Case3 Case4 Case5

Owner's equity, Jan 1 311,750 223,445 123,456 246,800 491,672
Additional investments 80,000 50,000 75,000 74,515 100,000
Withdrawals for family use 60,000 120,000 53,366 90,000 75,000
Net income (loss) 91,340 132,219 35,660 -5,645 -50,675
Owner's equity, June 30 423,090 285,664 180,750 225,670 465,997

III. For each of the given cases, compute for the

unknown.

Case1 Case2 Case3 Case4 Case5

Owner's equity, Jan 1 427,500 321,654 223,344 112,233 340,701
Additional investments 60,000 80,000 120,000 63,318 88,000
Withdrawals for family use 120,000 88,000 34,093 30,000 45,000
Net income (loss) 91,340 14,904 -23,456 -9,876 -25,750
Owner's equity, June 30 458,840 298,750 285,795 135,675 357,951