E1-16 Characteristics of a corporation, accounting concepts, and using
the accounting equation [5–10 min]
Select financial information for three corporations 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 ?
Requirements1. Compute the missing amount in the accounting equation for each entity.
2. List the seven main characteristics of a corporation.
3. Which accounting concept tells us that the previous three corporations will continue
to exist in the future?
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