BAACCEN reviewer

1. Assets = Liabilities + OE
A = 1,300,00 + 2,250,000 = 3,550,000
Increased to 115%: 3,550,000 * 1.15 = 4,082,500

2. Personal liability – not included in transactions.

3. n (liability) increased to 800,000
n (liability) increased by 60%
n = 800,000/1.6
n = 500,000
4. Total assets = 500,000
Total liab. = ¼ (capital)
Total capital = (capital)
A = L+E
500,000 = .25OE + OE
500,000 = 1.25 OE
500,000/1.25
OE = 400,000
Liabilities = 100,000
5. Cash withdrawals from his personal savings
Net increase? Original monetary value, 250,000
6. Net income = 150,000
Capital = 425,000

150,000/2 = 75,000

Deduction 425,000 -75,000 = 350,000

11. owners of the corporation are all shareholders