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Classifying Accounts Within the Accounting Equation Listed here are the account names
Chapter 3, Problem 3-6(choose chapter or problem)
Classifying Accounts Within the Accounting Equation
Listed here are the account names and balances for Wilderness Rentals.
Accounts Payable $ 7,000 Cash in Bank $ 5,000
Accounts Receivable 2,000 Office Equipment 3,000
Camping Equipment 12,000 Ronald Hicks, Capital 15,000
Instructions Using these account names and balances:
1. List and total the assets of the business.
2. Determine the amount owed by the business.
3. Give the amount of the owner's equity in the business.Design a diagram that shows the accounting equation
Questions & Answers
QUESTION:
Classifying Accounts Within the Accounting Equation
Listed here are the account names and balances for Wilderness Rentals.
Accounts Payable $ 7,000 Cash in Bank $ 5,000
Accounts Receivable 2,000 Office Equipment 3,000
Camping Equipment 12,000 Ronald Hicks, Capital 15,000
Instructions Using these account names and balances:
1. List and total the assets of the business.
2. Determine the amount owed by the business.
3. Give the amount of the owner's equity in the business.Design a diagram that shows the accounting equation
ANSWER:Step 1 of 5
Accounts classification refer to the segregation of different properties of the same nature under the same head. All the accounts come under three main heads – Assets, Liabilities, and Equity.