Accounting Equation Exercises

This assignment contains several exercises focusing on the accounting equation. It includes problems requiring students to analyze the effects of various events on the accounting equation, prepare financial statements (income statement, balance sheet, statement of cash flows), and analyze the relationship between net income and cash flow from operating activities. The exercises cover topics such as recording transactions, understanding the impact of transactions on financial statements, and analyzing changes in net income and cash flow. The website provides solved assignments and past papers to help students practice and understand these concepts.

EXERCISE 2-15A
a.
Life, Inc.
Effect of Events on the Accounting Equation
Assets = Stockholders’
Equity
Event Cash
Prepaid
Rent = Retained Earnings
1. Performed
Services
2. Prepaid Rent
3. Used Rent
Totals =
b.
Life, Inc.
Income Statement
For the Year Ended December 31, 2016
Life, Inc.
Balance Sheet
As of December 31, 2016

EXERCISE 2-15A b. (cont.)
Life, Inc.
Statement of Cash Flows
For the Year Ended December 31, 2016
c.
EXERCISE 2-19A
Hart Attorney At Law
Effect of Transactions on the Financial Statements for
Balance Sheet Income Stateme
Assets = Liabilities + S.
Equity
Rev  Exp. =
No. Cash + Suppli
es
=
Accts.
Payabl
e
+
Unearn.
Rev. +
Retaine
d
Earning
s
1. =
2. =
3. =
4. =
5. =
6. = (

7. =
8. =
Total
s
=
EXERCISE 2-27A
Net Income
Cash Flow from
Operating Activities
Event/Adj.
Direction
of Change
Amount of
Change
Direction
of Change
Amount of
Change
a. Event
Adj.
b. Event
Adj.
b. Event
No adj.
d. Event
Adj.
e. Event
No adj.
f. Event
No adj.
f. Event
No adj.
g. Event
No adj.
h. Event
No adj.
EXERCISE 2-29A
a.
b.

c.
d.
e.
f.
g.
h.
i.
j.
EXERCISE 2-30A
a.
b.
c.
d.
e.