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Question
The total increase or decrease for one component of the accounting equation is missing in each of the following situations:
i Assets decreased by $30 000; liabilities decreased by $19 500.
ii Owner's equity decreased by $37 250; assets decreased by $22 500.
iii Liabilities increased by $3000; owner's equity decreased by $15 000.
iv Owner's equity increased by $54 000; assets increased by $28 950.
Required:
Using Assets: $135 000 = Liabilities: $45 000 + Owner's equity: $90 000 as the beginning accounting equation for each of the above situations, and treating each situation independently, determine:
a) the total increase or decrease for the missing component of the equation
b) the amount of each component in the ending accounting equation.
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