ACC/561 ACC 561 Week 1 Assignment

Brief Exercise 1-7

Indicate which statement you would examine to find each of the following items: income statement, balance sheet, retained earnings statement, or statement of cash flows.

Brief Exercise 1-8

Use the basic accounting equation to answer these questions.

(a) The liabilities of Daley Company are $95,310 and the stockholders’ equity is $238,100. What is the amount of Daley Company’s total assets?

(b) The total assets of Laven Company are $192,800 and its stockholders’ equity is $83,700. What is the amount of its total liabilities?

(c) The total assets of Peterman Co. are $920,000 and its liabilities are equal to one fourth of its total assets. What is the amount of Peterman Co.’s stockholders’ equity?