1. “Bookkeeping and accounting are the same.” Do you agree? Explain.

=> Disagree.
The accounting process includes the bookkeeping function. Bookkeeping usually involves
only the recordings of economic events. It is therefore just one part of the accounting process.
In total, accounting involves that entire process of identifying, recording, and communicating
economic events

2. Saylor Enterprises had a capital balance of $168,000 at the beginning of the period. At
the end of the accounting period, the capital balance was $198,000.
(a) Assuming no additional investment or withdrawals during the period, what is the net
income for the period?
=> The net income for the period = $198,000 – $168,000 = $30,000
(b) Assuming an additional investment of $13,000 but no withdrawals during the period,
what is the net income for the period?
=> The net income for the period = $198,000 – $168,000 - $13,000 = $17,000
3.
a. Owner’s Equity = Assets – Liabilities
= $90,000- $50,000
= $40,000
b. Assets = Liabilities + Owner’s Equity
= $44,000 + $70,000
= $ 114,000
c. Liabilities = Assets – Owner’s Equity
= $94,000 - $53,000
= $41,000
4.
a, Liabilities = $90,000
Owner’s Capital= $150,000
Drawings= $40,000
Revenues = $320,000
Expenses= $320,000
 Total assets= $90,000 + $150,000 + $320,000 - $320,000 - $40,000 = $200,000
b, Total assets= $57,000
Owner’s Capital= $25,000
Drawings= $7,000
 Revenues = $52,000
Expenses= $35,000
 Total liabilities = Assets – owner’s capital – revenues +expenses + drawings
= $57,000 - $25,000 - $52,000 + $35,000 + $7,000
= $22,000
c, Total assets= $600,000
Liabilities are equal to two – thirds of total assets =>New Liabilities = $400,000
 Owner’s Equity = $200,000