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Accounting Equation and Financial Overview

The document shows the accounting equation for Robert Cruz's business over 13 periods tracking assets, liabilities, and equity. It starts with $300,000 cash and a $350,000 computer as assets and $350,000 in accounts payable as the liability. Over time, additional assets like furniture and a car are purchased using increased investment and income, while expenses and withdrawals affect equity. By period 13, assets total $875,000 with $200,000 in liabilities and $675,000 in owner's equity.

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166 views12 pages

Accounting Equation and Financial Overview

The document shows the accounting equation for Robert Cruz's business over 13 periods tracking assets, liabilities, and equity. It starts with $300,000 cash and a $350,000 computer as assets and $350,000 in accounts payable as the liability. Over time, additional assets like furniture and a car are purchased using increased investment and income, while expenses and withdrawals affect equity. By period 13, assets total $875,000 with $200,000 in liabilities and $675,000 in owner's equity.

Uploaded by

SURPRISE MO DELIVER KO
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

ACCOUNTING EQUATION

ASSETS = LIABILITIES
1 Cash 300,000.00

2 Cash 300,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 350,000.00
650,000.00 350,000.00

3 Cash 150,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 350,000.00

Furnitures 150,000.00
650,000.00 350,000.00

4 Cash 100,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 300,000.00

Furnitures 150,000.00
600,000.00 300,000.00

5 Cash 100,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 200,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00
600,000.00 300,000.00

6 Cash 85,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 200,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00
585,000.00 300,000.00

7 Cash 85,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00
585,000.00 200,000.00

8 Cash 75,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00

575,000.00 200,000.00

9 Cash 275,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00

775,000.00 200,000.00

10 Cash 25,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00

Automobile 250,000.00
775,000.00 200,000.00

11 Cash 205,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00

Automobile 250,000.00

955,000.00 200,000.00

12 Cash 175,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00

Automobile 250,000.00

925,000.00 200,000.00

13 Cash 125,000.00
Accounts Payable
Computer 350,000.00 -Bitstop 100,000.00
Noted Payable -
Furnitures 150,000.00 Bitstop 100,000.00

Automobile 250,000.00
875,000.00 200,000.00
QUATION
PROPRIETORSHIP
R. Cruz, Capital 300,000.00

R. Cruz, Capital 300,000.00

300,000.00

R. Cruz, Capital 300,000.00

300,000.00

R. Cruz, Capital 300,000.00

300,000.00

R. Cruz, Capital 300,000.00

300,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (15,000.00)


285,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (15,000.00)

Additional Investment 100,000.00


385,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (15,000.00)

Additional Investment 100,000.00

Rent Expense (10,000.00)


375,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (15,000.00)

Additional Investment 300,000.00

Rent Expense (10,000.00)


575,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (15,000.00)

Additional Investment 300,000.00

Rent Expense (10,000.00)


575,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (15,000.00)

Additional Investment 300,000.00

Rent Expense (10,000.00)

Computer Income 180,000.00


755,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (30,000.00)

Additional Investment 300,000.00

Rent Expense (10,000.00)

Computer Income 180,000.00

Utilities Expense (15,000.00)


725,000.00

R. Cruz, Capital 300,000.00

Salaries Expenses (30,000.00)

Additional Investment 300,000.00

Rent Expense (10,000.00)

Computer Income 180,000.00

Utilities Expense (15,000.00)

Withdrawal (50,000.00)
675,000.00
ROBERT CRUZ
INCOME STATEMENT
For the month ended March 31, 2020

Computer Rental Income 180,000.00


Less:
Salary Expenses 30,000.00
Rent Expense 10,000.00
Utility Expense 15,000.00 55,000.00
Net Income from Operations 125,000.00

ROBERT CRUZ
STATEMENT OF CHANGES IN EQUITY
For the month ended March 31, 2020

Robert Cruz, capital beginning 300,000.00


Additional Investment 300,000.00
Net Income for the month 125,000.00 425,000.00
Sub- total 725,000.00
Witdrawal 50,000.00
Robert Cruz, CApital, March 31, 2020 675,000.00
ROBERT CRUZ
STATEMENT OF OF FINANCIAL POSITION
As of March 31, 2020
ASSETS LIABILITIES AND PROPRIETORSHIP
CURRENT ASSETS LIABILITIES
Accounts Payable -
Cash 125,000.00 Bitstop 100,000.00
Notes Payable -
Bitstop 100,000.00

NON-CURRENT PROPRIETORSHIP
ASSETS R. Cruz, Capital
Computer 350,000.00
Furniture 150,000.00
Automobile 250,000.00 750,000.00

TOTAL LIABILITIES
AND
TOTAL ASSETS 875,000.00 PROPRIETORSHIP
TION

PROPRIETORSHIP

200,000.00

675,000.00

875,000.00

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