Characteristics of a proprietorship, accounting concepts, and using the accounting equation
Select financial information for three companies follows:
|
Assets |
Liabilities |
Owner”s Equity |
|
|
New Rock Gas |
$ |
$24,000 |
$50,000 |
|
DJ Video Rentals |
75,000 |
? |
32,000 |
|
Corner Grocery |
100,000 |
53,000 |
? |
Requirements
1. Compute the missing amount in the accounting equation for each entity.
2. List the main characteristics of a proprietorship.
3. Which accounting concept tells us that the previous three proprietorships will continue to exist in the future?