Purchase a truck. The seller asked for $11,000, but Byrde paid only $10,000 after ne
tion. The owner of Byrde Co. believes he got a great deal and the truck is really worth $15,000.
amount does Byrde record on its financial statements for the truck? 1. -Amount He
b. Snell Co. performs services for a client in May and bills the client $1,000. In June, Snell rec
partial payment of $300 cash. In July, the remaining $700 cash is received. Determine the r
revenue recorded in May, June, and July applying revenue recognition principle. 300,
T
Determine the missing amount from each of the separate situations a, b, and c below.
1
2
3
4
$
A
Assets
(a)
100,000
154,000
B
Liabilities
$ 20,000
34,000
(c)
C
Equity
$45,000
(b)
40,000
Answer the following questions. Hint: Use the accounting equation.
. At the beginning of the year, Addison Company's assets are $300,000 and its equity is $10
the year, assets increase $80,000 and liabilities increase $50,000. What is the equity at ye
. Office Store Co. has assets equal to $123,000 and liabilities equal to $47,000 at year-e