Review Activities Chapter 3

1 / 18
next
Slide 1: Video
Economie

This lesson contains 18 slides, with interactive quizzes, text slides and 1 video.

Items in this lesson

Slide 1 - Video

Chapter 3, Review activities
Pages 53-77

Slide 2 - Slide

Objectives
  • Complete the accounting equation.
  • Classifying the accounts within the accounting Equation
  • Evaluate the effect of transactions on the accounting equation.

Slide 3 - Slide

Find which among these is the correct formula of accounting equation.
A
Assets+Liabilities= Owner's Equity
B
Asset-Owner's Equity
C
Assets=Liabilities-Owner's Equity
D
Asset=Liability+ Owner's equity

Slide 4 - Quiz

A business owned and operated by Mike Murray uses these accounts.
INSTRUCTIONS Look at the following list of accounts, and determine the
missing amount for each of the question marks.
Assets =                          Liabilities +                          Owner’s Equity
Cash in Bank $4,500         Accounts Payable           Mike Murray,
Accounts Receivable 1,350          ?                                  Capital $9,250
Office Equipment 5,000
Assets=?                         Liabilities=?                Total Owner's Equity=?

Slide 5 - Slide

Answers
Total Assets $10,850
Liabilities (Accounts Payable) $1,600


Slide 6 - Slide

Predict what would happen to owner’s equity if this business paid all of its bills today.

Slide 7 - Open question

Answer
Owner’s equity would not change.
The decrease in Cash in Bank (an asset) would equal the decrease in Accounts Payable (a liability).

Slide 8 - Slide

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

Slide 9 - Slide

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

Slide 10 - Slide

Answer the above question here.

Slide 11 - Mind map

Answers
Total Assets: $22,000 (Cash in Bank, Accounts Receivable, Camping Equipment, Office Equipment)
Liabilities: $7,000
Owner’s Equity: $15,000

Slide 12 - Slide

After graduating from college, Abe Shultz decided to start a pet grooming service called Kits & Pups Grooming.

INSTRUCTIONS Use a form similar to the one that follows. For each of the
following transactions: 
1. Identify the accounts affected, using the account names on the form.
2. Determine the amount of the increase or decrease for each account.
3. Write the amount of the increase (+) or decrease (_) in the space under
each account affected.
4. On the following line, write the new balance for each account.
5. Transaction 1 is completed as an example.

Slide 13 - Slide

Date              Transactions
Jan. 2            1. Abe Shultz began the business by depositing                                    $10,000 in
a checking account at the Shoreline National Bank in the  name of the business, Kits & Pups Grooming. 
2. Bought grooming equipment for cash, $1,000.
3. Issued a check for $900 for the monthly rent.
4. Bought $6,000 worth of new office equipment on account
for use in the business.

Slide 14 - Slide

Answer the above question.

Slide 15 - Mind map

Answers
1.Cash in Bank + $10,000          Capital Account-Abe Shultz  +                                                                                                                    $10,000
2.Grooming Equip+$1,000         Cash in Bank -$1,000
3.Cash in Bank  -$900                  Capital Account -Abe Shultz                                                                                                                 -$900
4.Office Equipment+$6000                Account Payable + $6000

Slide 16 - Slide

Give your answers here for the above question.

Slide 17 - Open question

What are the important points of the lesson?

Slide 18 - Mind map