AG Bookkeeping Services LLC

Chapter 1: The Accounting Equation Question 1:  Define the three components of the Accounting Equation. Question 2:  If a business owns a piece of real estate worth $250,000, and they owe $180,000 on a loan for that real estate, what is owners’ equity in the property? Answer to Question 1: Assets: All the property owned by a business. Liabilities: A company’s outstanding debts. Owners’ Equity: The company’s ownership interests in its property after all debts have been repaid. Answer to Question 2:  $70,000 Chapter 2: The Balance Sheet Question 1:  Categorize the following accounts as to whether they’re Asset, Liability, of Owners’ Equity accounts. Common Stock Accounts Receivable Retained Earnings Cash Notes Payable Question 2:  For each of the following assets or liabilities, state whether it is current or non-current: Accounts Payable Cash Property, Plant, and Equipment Note Payable Inventory Answer to Question 1: Common Stock: Owners’ Equity Acc...