Stuvia-2405674-solution-manual-for-accounting-principles-14th-edition-by-jerry-j.-weygandt-paul-d
pdf
keyboard_arrow_up
School
University of Lahore *
*We aren’t endorsed by this school
Course
25
Subject
Accounting
Date
Nov 24, 2024
Type
Pages
53
Uploaded by Seeratfatima53000
Solution Manual For Accounting Principles
14th Edition by Jerry J. Weygandt, Paul D.
Kimmel
written by
a_plus_work
www.stuvia.com
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
lOMoARcPSD|15670522
Financial Accounting - Weygandt - Kimmel - Kieso -
Solution
Manual Accounting in Action
Financial Accounting (Institute of Business Management)
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief
A
B
Study Objectives
Questions
Exercises
Exercises
Problems
Problems
1.
Explain what
1,2,5
1
accounting is.
2.
Identify the users and
3, 4
2
uses of accounting.
3.
Understand why ethics
3
is a fundamental business
concept.
4.
Explain generally accepted
6
4
accounting principles
and the cost principle.
5.
Explain the monetary
7, 8, 9, 10
4
unit assumption and
the economic entity
assumption.
6.
State the accounting
11, 12, 13
1,2,3,4
5, 6, 7, 11
1A, 2A
1B, 2B
equation, and define
4A
4B
assets, liabilities, and
owner’s equity.
7.
Analyze the effects of
14, 15,
5,6,7,8
6, 7, 8,
1A, 2A,
1B, 2B,
business transactions on
16, 18
10, 11
4A, 5A
4B, 5B
the accounting equation.
8.
Understand the four
17, 19,
9, 10
9, 12, 13,
2A, 3A,
2B, 3B,
financial statements
20, 21
14, 15, 16
4A, 5A
4B, 5B
and how they are
prepared.
1-1
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
ASSIGNMENT CHARACTERISTICS TABLE
Problem
Difficulty
Time Allotted
Number
Description
Level
(min.)
1A
Analyze transactions and compute net income.
Moderate
40–50
2A
Analyze transactions and prepare income statement,
Moderate
50–60
owner’s equity statement, and balance sheet.
3A
Prepare income statement, owner’s equity statement, and
Moderate
50–60
balance sheet.
4A
Analyze transactions and prepare financial statements.
Moderate
40–50
5A
Determine financial statement amounts and prepare
Moderate
40–50
owner’s equity statement.
1B
Analyze transactions and compute net income.
Moderate
40–50
2B
Analyze transactions and prepare income statement,
Moderate
50–60
owner’s equity statement, and balance sheet.
3B
Prepare income statement, owner’s equity statement, and
Moderate
50–60
balance sheet.
4B
Analyze transactions and prepare financial statements.
Moderate
40–50
5B
Determine financial statement amounts and prepare
Moderate
40–50
owner’s equity statement.
1-2
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Correlation Chart between Bloom’s Taxonomy, Study Objectives and End-of-Chapter Exercises and Problems
Study Objective
Knowledge
Comprehension
Application
Analysis
Synthesis
Evaluation
1.
Explain what accounting is.
Q1-1
Q1-5
Q1-2
E1-1
2.
Identify the users and uses of
Q1-3
E1-2
accounting.
Q1-4
3.
Understand why ethics is a funda-
E1-3
mental business concept.
4.
Explain generally accepted
Q1-6
accounting principles and the
E1-4
cost principle.
5.
Explain the monetary unit
Q1-8
Q1-7
assumption and the economic
Q1-9
Q1-10
entity assumption.
E1-4
6.
State the accounting equation,
Q1-11
Q1-13
E1-6
BE1-1
P1-2A
and define assets, liabilities, and
Q1-12
BE1-4
E1-7
BE1-2
P1-4A
owner’s equity.
E1-5
BE1-3
P1-1B
E1-11
P1-2B
P1-1A
P1-4B
7.
Analyze the effects of business
Q1-14
BE1-6
E1-8
P1-5A
transactions on the accounting
Q1-15
BE1-7
E1-10
P1-1B
equation.
Q1-16
BE1-8
E1-11
P1-2B
Q1-18
E1-6
P1-1A
P1-4B
BE1-5
E1-7
P1-2A
P1-5B
P1-4A
8.
Understand the four financial
Q1-17
Q1-20
P1-2A
E1-13
statements and how they are
Q1-19
Q1-21
P1-3A
prepared.
BE1-10
BE1-9
P1-4A
E1-9
P1-5A
E1-12
P1-2B
E1-14
P1-3B
E1-15
P1-4B
E1-16
P1-5B
Broadening Your Perspective
Exploring the Web
Financial Reporting
All About You
Comparative Analysis
Comparative Analysis
Exploring the Web
Decision Making Across
the Organization
Communication Activity
Ethics Case
BLOOM’S TAXONOMY TABLE
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
ANSWERS TO QUESTIONS
1.
Yes, this is correct. Virtually every organization and person in our society uses accounting information.
Businesses, investors, creditors, government agencies, and not-for-profit organizations must use accounting
information to operate effectively.
2.
Accounting is the process of identifying, recording, and communicating the economic events of an
organization to interested users of the information. The first step of the accounting process is therefore to
identify economic events that are relevant to a particular business. Once identified and measured, the
events are recorded to provide a history of the financial activities of the organization. Recording consists of
keeping a chronological diary of these measured events in an orderly and systematic manner. The
information is communicated through the preparation and distribution of accounting reports, the most
common of which are called financial statements. A vital element in the communication process is the
accountant’s ability and responsibility to analyze and interpret the reported information.
3.
(a) Internal users are those who plan, organize, and run the business and therefore are officers and other
decision makers.
(b)
To assist management, accounting provides internal reports. Examples include financial comparisons
of operating alternatives, projections of income from new sales campaigns, and forecasts of cash
needs for the next year.
4.
(a)
Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
(b)
Creditors use accounting information to evaluate the risks of granting credit or lending money.
5.
Bookkeeping usually involves only the recording of economic events and therefore is just one part of the
entire accounting process. Accounting, on the other hand, involves the entire process of identifying,
recording, and communicating economic events.
6.
Karen Sommers Travel Agency should report the land at $90,000 on its December 31, 2008 balance sheet.
An important concept that accountants follow is the cost principle. The cost principle states that assets
should be recorded at their cost. Cost has an important advantage over other valuations: it is reliable. Cost
can be objectively measured and can be verified.
7.
The monetary unit assumption requires that only transaction data capable of being expressed in terms of
money be included in the accounting records. This assumption enables accounting to quantify (measure)
economic events.
8.
The economic entity assumption requires that the activities of the entity be kept separate and distinct from
the activities of its owners and all other economic entities.
9.
The three basic forms of business organizations are: (1) proprietorship, (2) partnership, and
(3) corporation.
1-4
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
Questions Chapter 1
(Continued)
10.
One of the advantages Maria Gonzalez would enjoy is that ownership of a corporation is repre-sented by
transferable shares of stock. This would allow Maria to raise money easily by selling a part of her
ownership in the company. Another advantage is that because holders of the shares (stockholders) enjoy
limited liability, they are not personally liable for the debts of the corporate entity. Also, because
ownership can be transferred without dissolving the corporation, the corporation enjoys an unlimited life.
11.
The basic accounting equation is Assets = Liabilities + Owner’s Equity.
12.
(a) Assets are resources owned by a business. Liabilities are claims against assets. Put more simply,
liabilities are existing debts and obligations. Owner’s equity is the ownership claim on total assets.
(b)
Owner’s equity is affected by owner’s investments, drawings, revenues, and expenses.
13.
The liabilities are: (b) Accounts payable and (g) Salaries payable.
14.
Yes, a business can enter into a transaction in which only the left side of the accounting equation is
affected. An example would be a transaction where an increase in one asset is offset by a decrease in
another asset. An increase in the Equipment account which is offset by a decrease in the Cash account is a
specific example.
15.
Business transactions are the economic events of the enterprise recorded by accountants because they
affect the basic equation.
(a)
The death of the owner of the company is not a business transaction as it does not affect the basic
equation.
(b)
Supplies purchased on account is a business transaction as it affects the basic equation.
(c)
An employee being fired is not a business transaction as it does not affect the basic equation.
(d)
A withdrawal of cash from the business is a business transaction as it affects the basic equation.
16.
(a)
Decrease assets and decrease owner’s equity.
(b)
Increase assets and decrease assets.
(c)
Increase assets and increase owner’s equity.
(d)
Decrease assets and decrease liabilities.
17.
(a)
Income statement.
(d)
Balance sheet.
(b)
Balance sheet.
(e)
Balance sheet and owner’s equity statement.
(c)
Income statement.
(f)
Balance sheet.
18.
No, this treatment is not proper. While the transaction does involve a receipt of cash, it does not represent
revenues. Revenues are the gross increase in owner’s equity resulting from business activities entered into
for the purpose of earning income. This transaction is simply an additional investment made by the owner
in the business.
19.
Yes. Net income does appear on the income statement—it is the result of subtracting expenses from
revenues. In addition, net income appears in the statement of owner’s equity—it is shown as an addition to
the beginning-of-period capital. Indirectly, the net income of a company is also included in the balance
sheet. It is included in the capital account which appears in the owner’s equity section of the balance sheet.
1-5
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
Questions Chapter 1
(Continued)
20.
(a)
Ending capital balance
.....................................................................................................
$198,000
Beginning capital balance
................................................................................................
168,000
Net income
..........................................................................................................................
$
30,000
(b)
Ending capital balance
.....................................................................................................
$198,000
Beginning capital balance
................................................................................................
168,000
30,000
Deduct:
Investment
..........................................................................................................
13,000
Net income
..........................................................................................................................
$
17,000
21.
(a)
Total revenues ($20,000 + $70,000)
.............................................................................
$90,000
(b)
Total expenses ($26,000 + $40,000)
.............................................................................
$66,000
(c)
Total revenues
...................................................................................................................
$90,000
Total expenses
...................................................................................................................
66,000
Net income
..........................................................................................................................
$
24,000
1-6
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
SOLUTIONS TO BRIEF EXERCISES
BRIEF EXERCISE 1-1
(a)
$90,000 – $50,000 = $40,000 (Owner’s Equity).
(b)
$40,000 + $70,000 = $110,000 (Assets).
(c)
$94,000 – $60,000 = $34,000 (Liabilities).
BRIEF EXERCISE 1-2
(a)
$120,000 + $232,000 = $352,000 (Total assets).
(b)
$190,000 – $80,000 = $110,000 (Total liabilities).
(c)
$800,000 – 0.5($800,000) = $400,000 (Owner’s equity).
BRIEF EXERCISE 1-3
(a)
($800,000 + $150,000) – ($500,000 – $80,000) = $530,000
(Owner’s equity).
(b)
($500,000 + $100,000) + ($800,000 – $500,000 – $70,000) = $830,000
(Assets).
(c)
($800,000 – $80,000) – ($800,000 – $500,000 + $120,000) = $300,000
(Liabilities).
BRIEF EXERCISE 1-4
A
(a)
Accounts receivable
A
(d)
Office supplies
L
(b)
Salaries payable
OE
(e)
Owner’s investment
A
(c)
Equipment
L
(f)
Notes payable
BRIEF EXERCISE 1-5
Assets
Liabilities
Owner’s Equity
(a)
+
+
NE
(b)
+
NE
+
(c)
–
NE
–
1-7
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BRIEF EXERCISE 1-6
Assets
Liabilities
Owner’s Equity
(a)
+
NE
+
(b)
–
NE
–
(c)
NE
NE
NE
BRIEF EXERCISE 1-7
E
(a)
Advertising expense
D
(e)
Bergman, Drawing
R
(b)
Commission revenue
R
(f)
Rent revenue
E
(c)
Insurance expense
E
(g)
Utilities expense
E
(d)
Salaries expense
BRIEF EXERCISE 1-8
R
(a)
Received cash for services performed
NOE
(b)
Paid cash to purchase equipment
E
(c)
Paid employee salaries
BRIEF EXERCISE 1-9
LOPEZ COMPANY
Balance Sheet
December 31, 2008
Assets
Cash
................................................................................................................
$
49,000
Accounts receivable
..................................................................................
72,500
Total assets
..........................................................................................
$
121,500
Liabilities and Owner’s Equity
Liabilities
Accounts payable
..............................................................................
$
90,000
Owner’s equity
Kim Lopez, Capital
.............................................................................
31,500
Total liabilities and owner’s equity
.....................................
$
121,500
1-8
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BRIEF EXERCISE 1-10
BS
(a)
Notes payable
IS
(b)
Advertising expense
OE, BS
(c)
Trent Buchanan, Capital
BS
(d)
Cash
IS
(e)
Service revenue
1-9
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
SOLUTIONS TO EXERCISES
EXERCISE 1-1
C
Analyzing and interpreting information. R
Classifying economic events.
C
Explaining uses, meaning, and limitations of data. R
Keeping a systematic chronological diary of events. R
Measuring events in dollars and cents.
C
Preparing accounting reports.
C
Reporting information in a standard format.
I
Selecting economic activities relevant to the company. R
Summarizing economic events.
EXERCISE 1-2
(a)
Internal users
Marketing manager
Production supervisor
Store manager Vice-
president of finance
External users
Customers
Internal Revenue Service
Labor unions
Securities and Exchange Commission
Suppliers
(b)
I Can we afford to give our employees a pay raise? E Did
the company earn a satisfactory income?
IDo we need to borrow in the near future?
EHow does the company’s profitability compare to other companies?
IWhat does it cost us to manufacture each unit produced?
IWhich product should we emphasize?
EWill the company be able to pay its short-term debts?
1-10
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-3
Larry Smith, president of Smith Company, instructed Ron Rivera, the head of the
accounting department, to report the company’s land in their accounting reports at
its market value of $170,000 instead of its cost of $100,000, in an effort to make the
company appear to be a better investment. The cost principle requires that assets be
recorded and reported at their cost, because cost is reliable and can be objectively
measured and verified.
The stakeholders include stockholders and creditors of Smith Company, potential
stockholders and creditors, other users of Smith’s accounting reports, Larry Smith,
and Ron Rivera. All users of Smith’s accounting reports could be harmed by relying
on information which violates accounting principles. Larry Smith could benefit if
the company is able to attract more investors, but would be harmed if the
fraudulent reporting is discovered. Similarly, Ron Rivera could benefit by pleasing
his boss, but would be harmed if the fraudulent reporting is discovered.
Ron’s alternatives are to report the land at $100,000 or to report it at $170,000.
Reporting the land at $170,000 is not appropriate since it would mislead many
people who rely on Smith’s accounting reports to make finan-cial decisions. Ron
should report the land at its cost of $100,000. He should try to convince Larry Smith
that this is the appropriate course of action, but be prepared to resign his position if
Smith insists.
EXERCISE 1-4
1.
Incorrect. The
cost principle
requires that assets be recorded and reported at
their cost.
2.
Correct. The
monetary unit assumption
requires that companies include in
the accounting records only transaction data that can be expressed in terms of
money.
3.
Incorrect. The
economic entity assumption
requires that the activities of the
entity be kept separate and distinct from the activities of its owner and all other
economic entities.
1-11
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-5
Asset
Liability
Owner’s Equity
Cash
Accounts payable
Karin Meredith, Capital
Cleaning equipment
Notes payable
Cleaning supplies
Salaries payable
Accounts receivable
EXERCISE 1-6
1.
Increase in assets and increase in owner’s equity.
2.
Decrease in assets and decrease in owner’s equity.
3.
Increase in assets and increase in liabilities.
4.
Increase in assets and increase in owner’s equity.
5.
Decrease in assets and decrease in owner’s equity.
6.
Increase in assets and decrease in assets.
7.
Increase in liabilities and decrease in owner’s equity.
8.
Increase in assets and decrease in assets.
9.
Increase in assets and increase in owner’s equity.
EXERCISE 1-7
1.
(c)
5.
(d)
2.
(d)
6.
(b)
3.
(a)
7.
(e)
4.
(b)
8.
(f)
EXERCISE 1-8
(a)
1.
Owner invested $15,000 cash in the business.
2.
Purchased office equipment for $5,000, paying $2,000 in cash and the
balance of $3,000 on account.
3.
Paid $750 cash for supplies.
4.
Earned $8,300 in revenue, receiving $4,600 cash and $3,700 on account.
5.
Paid $1,500 cash on accounts payable.
1-12
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-8 (Continued)
6.
Owner withdrew $2,000 cash for personal use.
7.
Paid $650 cash for rent.
8.
Collected $450 cash from customers on account.
9.
Paid salaries of $4,900.
10.
Incurred $500 of utilities expense on account.
(b)
Investment
.............................................................................................
$15,000
Service revenue
...................................................................................
8,300
Drawings
.................................................................................................
(2,000)
Rent expense
........................................................................................
(650)
Salaries expense
..................................................................................
(4,900)
Utilities expense
...................................................................................
(500)
Increase in capital
...............................................................................
$
15,250
(c)
Service revenue
...................................................................................
$8,300
Rent expense
........................................................................................
(650)
Salaries expense
..................................................................................
(4,900)
Utilities expense
...................................................................................
(500)
Net income
.............................................................................................
$
2,250
EXERCISE 1-9
S. MOSES & CO.
Income Statement
For the Month Ended August 31, 2008
Revenues
Service revenue
...................................................................................................................................
$8,300
Expenses
Salaries expense
........................................................................................................
$4,900
Rent expense
.......................................................................................................................
650
Utilities expense
................................................................................................................
500
Total expenses
.............................................................................................................................
6,050
Net income
..........................................................................................................................................................
$2,250
1-13
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-9 (Continued)
S. MOSES & CO.
Owner’s Equity Statement
For the Month Ended August 31, 2008
S. Moses, Capital, August 1
................................................
$
0
Add:
Investments
.................................................................
$15,000
Net income
...................................................................
2,250
17,250
17,250
Less:
Drawings
......................................................................
2,000
S. Moses, Capital, August 31
..............................................
$
15,250
S. MOSES & CO.
Balance Sheet
August 31, 2008
Assets
Cash
................................................................................................................
$
8,250
Accounts receivable
..................................................................................
3,250
Supplies
.........................................................................................................
750
Office equipment
.........................................................................................
5,000
Total assets
..........................................................................................
$
17,250
Liabilities and Owner’s Equity
Liabilities
Accounts payable
..............................................................................
$
2,000
Owner’s equity
S. Moses, Capital
................................................................................
15,250
Total liabilities and owner’s equity
.....................................
$
17,250
EXERCISE 1-10
(a)
Owner’s equity—12/31/07 ($400,000 – $250,000)
.....................
$150,000
Owner’s equity—1/1/07
....................................................................
100,000
Increase in owner’s equity
..............................................................
50,000
Add:
Drawings
..................................................................................
15,000
Net income for 2007
..........................................................................
$
65,000
1-14
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-10 (Continued)
(b)
Owner’s equity—12/31/08 ($460,000 – $300,000)
..................
$160,000
Owner’s equity—1/1/08—see (a)
.................................................
150,000
Increase in owner’s equity
...........................................................
10,000
Less:
Additional investment
.......................................................
50,000
Net loss for 2008
..............................................................................
$
40,000
(c)
Owner’s equity—12/31/09 ($590,000 – $400,000)
..................
$190,000
Owner’s equity—1/1/09—see (b)
................................................
160,000
Increase in owner’s equity
...........................................................
30,000
Less:
Additional investment
.......................................................
15,000
15,000
Add:
Drawings
...............................................................................
30,000
Net income for 2009
........................................................................
$
45,000
EXERCISE 1-11
(a)
Total assets (beginning of year)
.................................................
$95,000
Total liabilities (beginning of year)
............................................
85,000
Total owner’s equity (beginning of year)
.................................
$
10,000
(b)
Total owner’s equity (end of year)
.............................................
$40,000
Total owner’s equity (beginning of year)
.................................
10,000
Increase in owner’s equity
...........................................................
$
30,000
Total revenues
..................................................................................
$215,000
Total expenses
.................................................................................
175,000
Net income
.........................................................................................
$
40,000
Increase in owner’s equity
..................................
$30,000
Less:
Net income
...................................................
$(40,000)
Add:
Drawings
......................................................
24,000
(16,000)
Additional investment
...........................................
$
14,000
(c)
Total assets (beginning of year)
.................................................
$129,000
Total owner’s equity (beginning of year)
.................................
80,000
Total liabilities (beginning of year)
............................................
$
49,000
1-15
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-11 (Continued)
(d)
Total owner’s equity (end of year)
..............................................
$130,000
Total owner’s equity (beginning of year)
.................................
80,000
Increase in owner’s equity
............................................................
$
50,000
Total revenues
..................................................................................
$100,000
Total expenses
..................................................................................
55,000
Net income
.........................................................................................
$
45,000
Increase in owner’s equity
...................................
$50,000
Less:
Net income
...................................................
$(45,000)
Additional investment
..............................
(25,000)
(70,000)
Drawings
....................................................................
$
20,000
EXERCISE 1-12
LINDA STANLEY CO.
Income Statement
For the Year Ended December 31, 2008
Revenues
Service revenue
..............................................................
$62,500
Expenses
Salaries expense
............................................................
$30,000
Rent expense
...................................................................
10,400
Utilities expense
.............................................................
3,100
Advertising expense
.....................................................
1,800
Total expenses
.......................................................
45,300
Net income
................................................................................
$
17,200
LINDA STANLEY CO.
Owner’s Equity Statement
For the Year Ended December 31, 2008
Linda Stanley, Capital, January 1
............................................................
$48,000
Add:
Net income
.........................................................................................
17,200
65,200
Less:
Drawings
.............................................................................................
6,000
Linda Stanley, Capital, December 31
.....................................................
$
59,200
1-16
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-13
MENDEZ COMPANY
Balance Sheet
December 31, 2008
Assets
Cash
................................................................................................................
$15,000
Accounts receivable
..................................................................................
8,500
Supplies
.........................................................................................................
8,000
Equipment
.....................................................................................................
46,000
Total assets
.........................................................................................
$
77,500
Liabilities and Owner’s Equity
Liabilities
Accounts payable
..............................................................................
$20,000
Owner’s equity
Mendez, Capital ($67,500 – $10,000)
...........................................
57,500
Total liabilities and owner’s equity
.....................................
$
77,500
EXERCISE 1-14
(a)
Camping fee revenues
.....................................................................
$140,000
General store revenues
...................................................................
50,000
Total revenue
.............................................................................
190,000
Expenses
..............................................................................................
150,000
Net income
...........................................................................................
$
40,000
(b)
DEER PARK
Balance Sheet
December 31, 2008
Assets
Cash
.......................................................................................................
$
23,000
Supplies
................................................................................................
2,500
Equipment
............................................................................................
105,500
Total assets
................................................................................
$
131,000
1-17
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-14 (Continued)
DEER PARK
Balance Sheet (Continued)
December 31, 2008
Liabilities and Owner’s Equity
Liabilities
Notes payable
.............................................................................
$
60,000
Accounts payable
.....................................................................
11,000
Total liabilities
...................................................................
71,000
Owner’s equity
Jan Nab, Capital ($131,000 – $71,000)
................................
60,000
Total liabilities and owner’s equity
............................
$
131,000
EXERCISE 1-15
SUMMERS CRUISE COMPANY
Income Statement
For the Year Ended December 31, 2008
Revenues
Ticket revenue
............................................................
$325,000
Expenses
Salaries expense
.......................................................
$142,000
Maintenance expense
..............................................
95,000
Property tax expense
...............................................
10,000
Advertising expense
................................................
3,500
Total expenses
..................................................
250,500
Net income
...........................................................................
$
74,500
EXERCISE 1-16
KEVIN JOHNSON, ATTORNEY
Owner’s Equity Statement
For the Year Ended December 31, 2008
Kevin Johnson, Capital, January 1
...............................................
$
23,000
(a)
Add:
Net income
...............................................................................
139,000 (b)
162,000
Less:
Drawings
...................................................................................
79,000
Kevin Johnson, Capital, December 31
.........................................
$
83,000
(c)
1-18
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
EXERCISE 1-16 (Continued)
Supporting Computations
(a)
Assets, January 1, 2008
..................................................................
$85,000
Liabilities, January 1, 2008
.............................................................
62,000
Capital, January 1, 2008
..................................................................
$
23,000
(b)
Legal service revenue
......................................................................
$350,000
Total expenses
...................................................................................
211,000
Net income
...........................................................................................
$
139,000
(c)
Assets, December 31, 2008
............................................................
$168,000
Liabilities, December 31, 2008
......................................................
85,000
Capital, December 31, 2008
............................................................
$
83,000
1-19
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
20-1
(a)
BARONE REPAIR SHOP
Accounts
Accounts
N. Barone,
Cash
+ Receivable
+
Supplies
+ Equipment
=
Payable
+
Capital
1.
Investment
+$10,000
+$10,000
+
10,000
=
+
10,000
2.
+
–5,000
+$5,000
+000,000
+
5,000
+
+
5,000
=
+
+
10,000
3.
+
–400
+00,000
+
–400
Rent Expense
+
4,600
+
+
5,000
=
+
+
9,600
4.
+
–500
+$500
+00,000
+000,000
+
4,100
+
+
500
+
+
5,000
=
+
+
9,600
5.
+000,000
+0000
+00,000
+$250
+
–250
Adv. Expense
+
4,100
+
+
500
+
+
5,000
=
+
250
+
+
9,350
6.
–
+5,100
+0000
+00,000
+0000
–
+5,100
Service Revenue
+
9,200
+
+
500
+
+
5,000
=
+
250
+
+
14,450
7.
–1,000
+0000
+00,000
+0000
–1,000
Drawings
+
8,200
+
+
500
+
+
5,000
=
+
250
+
+
13,450
8.
+
–2,000
+0000
+00,000
+0000
+
–2,000
Salaries Expense
+
6,200
+
+
500
+
+
5,000
=
+
250
+
+
11,450
9.
+
–140
+0000
+00,000
+0000
+
–140
Utilities Expense
+
6,060
+
+
500
+
+
5,000
=
+0
250
+
+
11,310
10.
+000,000
+$750
+0000
+00,000
+0000
–
+750
Service Revenue
+
6,060
+
+
750
+
+
500
+
+
5,000
=
+0
250
+
+
12,060
11.
–
+120
+
–120
+
$ 6,180
+
+
$630
+
+
$500
+
+
$5,000
=
+
$250
+
+
$12,060
$12,310
$12,310
PROBLEM 1-1A
PROBLEMSTOSOLUTIONS
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-1A (Continued)
(b)
Ending capital
.......................................................................................
$12,060
Add:
Drawings
....................................................................................
1,000
13,060
Deduct:
Investments
........................................................................
10,000
Net income
.............................................................................................
$
3,060
OR
Service revenue($5,100 + $750)
..................................
$5,850
Expenses
Salaries
......................................................................
$2,000
Rent
.............................................................................
400
Advertising
...............................................................
250
Utilities
.......................................................................
140
2,790
Net income
.......................................................
$
3,060
1-21
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
(a)
MARIA GONZALEZ, VETERINARIAN
Accounts
Office
Notes
Accounts
M. Gonzalez,
Cash
+ Receivable
+
Supplies
+ Equipment
=
Payable
+
Payable
+
Capital
Bal.
$ 9,000
+
$1,700
+
$600
+
$ 6,000
=
$3,600
+
$13,700
1.
–2,900
00,000
0000
000,000
–2,900
000,000
6,100
+
1,700
+
600
+
6,000
=
700
+
13,700
2.
+1,300
–1,300
0000
000,000
00,000
000,000
7,400
+
400
+
600
+
6,000
=
700
+
13,700
3.
–800
00,000
0000
+2,100
+1,300
000,000
6,600
+
400
+
600
+
8,100
=
2,000
+
13,700
4.
+2,500
+5,500
0000
000,000
00,000
+8,000
Serv. Revenue
9,100
+
5,900
+
600
+
8,100
=
2,000
+
21,700
5.
–1,000
00,000
0000
000,000
00,000
–1,000
Drawings
8,100
+
5,900
+
600
+
8,100
=
2,000
+
20,700
–1,700
Salaries Exp.
–900
Rent Expense
6.
–2,900
00,000
0000
000,000
00,000
–300
Adv. Expense
5,200
+
5,900
+
600
+
8,100
=
2,000
+
17,800
7.
000,000
00,000
0000
000,000
+170
–170
Utilities Exp.
5,200
+
5,900
+
600
+
8,100
=
2,170
+
17,630
8.
+10,000
00,000
0000
000,000
+$10,000
00,000
000,000
$15,200
+
$5,900
+
$600
+
$ 8,100
=
+
$10,000
+
$2,170
+
$17,630
$29,800
$29,800
PROBLEM 1-2A
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-2A (Continued)
(b)
MARIA GONZALEZ, VETERINARIAN
Income Statement
For the Month Ended September 30, 2008
Revenues
Service revenue
.......................................................................................................................
$8,000
Expenses
Salaries expense
..........................................................................................
$1,700
Rent expense
.........................................................................................................
900
Advertising expense
........................................................................................
300
Utilities expense
..................................................................................................
170
Total expenses
.................................................................................................................
3,070
Net income
..............................................................................................................................................
$4,930
MARIA GONZALEZ, VETERINARIAN
Owner’s Equity Statement
For the Month Ended September 30, 2008
M. Gonzalez, Capital, September 1
..................................................................................
$13,700
Add:
Net income
................................................................................................................................
4,930
18,630
Less:
Drawings
......................................................................................................................................
1,000
M. Gonzalez, Capital, September 30
................................................................................
$17,630
1-23
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-2A (Continued)
MARIA GONZALEZ, VETERINARIAN
Balance Sheet
September 30, 2008
Assets
Cash
.........................................................................................................
$15,200
Accounts receivable
...........................................................................
5,900
Supplies
..................................................................................................
600
Office equipment
..................................................................................
8,100
Total assets
...................................................................................
$
29,800
Liabilities and Owner’s Equity
Liabilities
Notes payable
...............................................................................
$10,000
Accounts payable
.......................................................................
2,170
Total liabilities
.....................................................................
12,170
Owner’s equity
M. Gonzalez, Capital
...................................................................
17,630
Total liabilities and owner’s equity
..............................
$
29,800
1-24
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-3A
(a)
SKYLINE FLYING SCHOOL
Income Statement
For the Month Ended May 31, 2008
Revenues
Lesson revenue
$7,500
Expenses
Fuel expense
................................................................................................
$2,500
Rent expense
..................................................................................................
1,200
Advertising expense
......................................................................................
500
Insurance expense
..........................................................................................
400
Repair expense
.................................................................................................
400
Total expenses
.................................................................................................................
5,000
Net income
..............................................................................................................................................
$2,500
SKYLINE FLYING SCHOOL
Owner’s Equity Statement
For the Month Ended May 31, 2008
Jeff Wilkins, Capital, May 1
.......................................
$
0
Add:
Investments
.......................................................
$45,000
Net income
.........................................................
2,500
47,500
47,500
Less:
Drawings
............................................................
1,500
Jeff Wilkins, Capital, May 31
.....................................
$
46,000
SKYLINE FLYING SCHOOL
Balance Sheet
May 31, 2008
Assets
Cash
.........................................................................................................
$
5,600
Accounts receivable
...........................................................................
7,200
Equipment
..............................................................................................
64,000
Total assets
..................................................................................
$
76,800
1-25
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-3A (Continued)
SKYLINE FLYING SCHOOL
Balance Sheet (Continued)
May 31, 2008
Liabilities and Owner’s Equity
Liabilities
Notes payable
...............................................................................
$30,000
Accounts payable
.......................................................................
800
Total liabilities
.....................................................................
30,800
Owner’s equity
Jeff Wilkins, Capital
....................................................................
46,000
Total liabilities and owner’s equity
..............................
$
76,800
(b)
SKYLINE FLYING SCHOOL
Income Statement
For the Month Ended May 31, 2008
Revenues
Lesson revenue ($7,500 + $900)
.....................
$8,400
Expenses
Fuel expense ($2,500 + $1,500)
......................
$4,000
Rent expense
........................................................
1,200
Advertising expense
..........................................
500
Insurance expense
.............................................
400
Repair expense
....................................................
400
Total expenses
............................................
6,500
Net income
.....................................................................
$
1,900
SKYLINE FLYING SCHOOL
Owner’s Equity Statement
For the Month Ended May 31, 2008
Jeff Wilkins, Capital, May 1
.......................................
$
0
Add:
Investments
......................................................
$45,000
Net income
.......................................................
1,900
46,900
46,900
Less:
Drawings
...........................................................
1,500
Jeff Wilkins, Capital, May 31
....................................
$
45,400
1-26
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
(a)
MILLER DELIVERIES
Owner’s
Assets
=
Liabilities
+
Equity
Accounts
Delivery
Notes
Accounts
M. Miller,
Date
Cash
+
Receivable
+ Supplies
+
Van
= Payable
+
Payable
+
Capital
June
1
$10,000
)
(
$10,000
)
Investment
2
(2,000)
$12,000
(
$10,000
)
3
(500)
(500)
Rent Expense
5
(
$4,400
)
(
4,400
)
Service Revenue
9
(200)
(200)
Drawings
12
$150
(
$150
)
15
1,250
)
(1,250)
17
(
100
)
(100)
Gasoline Expense
20
1,500
)
(
1,500
)
Service Revenue
23
(500)
(500)
26
(250)
)
(250)
Utilities Expense
29
(100)
(100)
30
(1,000)
(1,000)
Salaries Expense
(
$
8,200
)
+
(
$3,150
)
+
$150+
$12,000
=
(
$
9,500
)
+
(
$150
)
+
(
$13,850
)
PROBLEM 1-4A
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-4A (Continued)
(b)
MILLER DELIVERIES
Income Statement
For the Month Ended June 30, 2008
Revenues
Service revenue ($4,400 + $1,500)
.............................................................................
$5,900
Expenses
Salaries expense
........................................................................................
$1,000
Rent expense
........................................................................................................
500
Utilities expense
................................................................................................
250
Gasoline expense
..............................................................................................
100
Total expenses
.................................................................................................................
1,850
Net income
..............................................................................................................................................
$4,050
(c)
MILLER DELIVERIES
Balance Sheet
June 30, 2008
Assets
Cash
..........................................................................................................................................................
$
8,200
Accounts receivable
............................................................................................................................
3,150
Supplies
............................................................................................................................................................
150
Delivery van
...........................................................................................................................................
12,000
Total assets
..............................................................................................................................
$23,500
Liabilities and Owner’s Equity
Liabilities
Notes payable
$
9,500
Accounts payable
...........................................................................................................................
150
Total liabilities
................................................................................................................
9,650
Owner’s equity
M. Miller, Capital
..................................................................................................................
13,850
Total liabilities and owner’s equity
...........................................................
$23,500
1-28
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-5A
(a)
Karma
Yates
McCain
Dench
Company
Company
Company
Company
(a)
$
45,000
(d)
$50,000
(g)
$120,000
(j)
$
80,000
(b)
115,000
(e)
62,000
(h)
70,000
(k)
250,000
(c)
10,000
(f)
48,000
(i)
431,000
(l)
435,000
(b)
YATES COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2008
Capital, January 1
.......................................................
$
60,000
Add:
Investment
.......................................................
$15,000
Net income
.......................................................
35,000
50,000
110,000
Less:
Drawings
..........................................................
48,000
Capital, December 31
................................................
$
62,000
(c)
The sequence of preparing financial statements is income statement, owner’s
equity statement, and balance sheet. The interrelationship of the owner’s
equity statement to the other financial statements results from the fact that net
income from the income statement is reported in the owner’s equity statement
and ending capital reported in the owner’s equity statement is the amount
reported for owner’s equity on the balance sheet.
1-29
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
30-1
(a)
MATRIX TRAVEL AGENCY
Accounts
Office
Accounts
Jenny Russo,
Cash
+
Receivable
+
Supplies
+ Equipment
=
Payable
+
Capital
1.
+$10,000
+$10,000
Investment
+
10,000
=
+
10,000
2.
+
–400
+
–400
Rent Expense
=
+
9,600
+
9,600
3.
+
–2,500
+$2,500
+000,000
=
+
7,100
+
+
2,500
+
9,600
4.
+000,000
+00,000
+$300
+
–300
Adv. Expense
=
+
7,100
+
+
2,500
+
300
+
+
9,300
5.
+
–600
+$600
+00,000
+0000
+000,000
=
+
6,500
+
+
600
+
+
2,500
+
300
+
+
9,300
6.
–
+3,000
+$6,500
+0000
+00,000
+0000
–
+9,500
Serv. Revenue
=
+
9,500
+
+
6,500
+
+
600
+
+
2,500
+
300
+
+
18,800
7.
+
–200
+
0,000
+0000
+00,000
+0000
+
–200
Drawings
=
+
9,300
+
+
6,500
+
+
600
+
+
2,500
+
300
+
+
18,600
8.
+
–300
+
0,000
+0000
+00,000
+
–300
+000,000
+
9,000
+
+
6,500
+
+
600
+
+
2,500
=
+
0
+
18,600
9.
+
–2,200
+
0,000
+0000
+00,000
+0000
+
–2,200
Salaries Exp.
=
+
6,800
+
+
6,500
+
+
600
+
+
2,500
+
16,400
10.
–
+4,000
+
–4,000
+0000
+00,000
+0000
+000,000
+
$10,800
+
+
$2,500
+
+
$600
+
+
$2,500
=
+
$
0
+
+
$16,400
$16,400
$16,400
PROBLEM 1-1B
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-1B (Continued)
(b)
Ending capital
........................................................................................
$16,400
Add:
Drawings
.....................................................................................
200
16,600
Deduct:
Investments
.........................................................................
10,000
Net income
..............................................................................................
$
6,600
OR
Service revenue
...............................................................
$9,500
Expenses
Salaries
......................................................................
$2,200
Rent
.............................................................................
400
Advertising
...............................................................
300
2,900
Net income
.......................................................
$
6,600
1-31
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
32-1
(a)
CINDY BELTON, ATTORNEY AT LAW
Cindy
Accounts
Office
Notes
Accounts
Belton,
Cash
+
Receivable
+
Supplies
+ Equipment
= Payable
+
Payable
+
Capital
Bal.
$4,000
+
$1,500
+
$500
+
$5,000
=
$4,200
+
$ 6,800
1.
+1,400
–1,400
0000
00,000
00,000
000,000
5,400
+
100
+
500
+
5,000
=
4,200
+
6,800
2.
–2,700
00,000
0000
00,000
–2,700
000,000
2,700
+
100
+
500
+
5,000
=
1,500
+
6,800
3.
+3,000
+6,000
0000
00,000
00,000
+9,000
Service Revenue
5,700
+
6,100
+
500
+
5,000
=
1,500
+
15,800
4.
–400
00,000
0000
+1,000
+600
000,000
5,300
+
6,100
+
500
+
6,000
=
2,100
+
15,800
5.
–4,250
–3,000
Salaries Expense
–900
Rent Expense
00,000
0000
00,000
00,000
–350
Advertising Expense
1,050
+
6,100
+
500
+
6,000
=
2,100
+
11,550
6.
–750
00,000
0000
00,000
00,000
–750
Drawings
300
+
6,100
+
500
+
6,000
=
2,100
+
10,800
7.
+2,000
00,000
0000
00,000
+$2,000
00,000
000,000
2,300
+
6,100
+
500
+
6,000
=
+
2,000
+
2,100
+
10,800
8.
00,000
00,000
0000
00,000
+00,000
+250
–250
Utilities Expense
$2,300
+
$6,100
+
$500
+
$6,000
=
+
$2,000
+
$2,350
+
$10,550
$14,900
$14,900
PROBLEM 1-2B
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-2B (Continued)
(b)
CINDY BELTON, ATTORNEY AT LAW
Income Statement
For the Month Ended August 31, 2008
Revenues
Service revenue
.......................................................................................................................
$9,000
Expenses
Salaries expense
........................................................................................
$3,000
Rent expense
........................................................................................................
900
Advertising expense
.......................................................................................
350
Utilities expense
................................................................................................
250
Total expenses
.................................................................................................................
4,500
Net income
..............................................................................................................................................
$4,500
CINDY BELTON, ATTORNEY AT LAW
Owner’s Equity Statement
For the Month Ended August 31, 2008
Cindy Belton, Capital, August 1
..........................................................................................
$
6,800
Add:
Net income
................................................................................................................................
4,500
11,300
Less:
Drawings
..........................................................................................................................................
750
Cindy Belton, Capital, August 31
.......................................................................................
$10,550
1-33
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-2B (Continued)
CINDY BELTON, ATTORNEY AT LAW
Balance Sheet
August 31, 2008
Assets
Cash
.........................................................................................................
$
2,300
Accounts receivable
...........................................................................
6,100
Supplies
..................................................................................................
500
Office equipment
..................................................................................
6,000
Total assets
...................................................................................
$
14,900
Liabilities and Owner’s Equity
Liabilities
Notes payable
...............................................................................
$
2,000
Accounts payable
.......................................................................
2,350
Total liabilities
.....................................................................
4,350
Owner’s equity
Cindy Belton, Capital
.................................................................
10,550
Total liabilities and owner’s equity
..............................
$
14,900
1-34
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-3B
(a)
DIVINE COSMETICS CO.
Income Statement
For the Month Ended June 30, 2008
Revenues
Service revenue
$6,000
Expenses
Supplies expense
......................................................................................
$1,600
Gas and oil expense
.......................................................................................
800
Advertising expense
......................................................................................
500
Utilities expense
...............................................................................................
300
Total expenses
.................................................................................................................
3,200
Net income
..............................................................................................................................................
$2,800
DIVINE COSMETICS CO.
Owner’s Equity Statement
For the Month Ended June 30, 2008
Michelle Bullock, Capital, June 1
............................
$
0
Add:
Investments
.......................................................
$26,200
Net income
.........................................................
2,800
29,000
29,000
Less:
Drawings
............................................................
1,200
Michelle Bullock, Capital, June 30
..........................
$
27,800
DIVINE COSMETICS CO.
Balance Sheet
June 30, 2008
Assets
Cash
.........................................................................................................
$11,000
Accounts receivable
...........................................................................
4,000
Cosmetic supplies
...............................................................................
2,000
Equipment
..............................................................................................
25,000
Total assets
..................................................................................
$
42,000
1-35
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-3B (Continued)
DIVINE COSMETICS CO.
Balance Sheet (Continued)
June 30, 2008
Liabilities and Owner’s Equity
Liabilities
Notes payable
...............................................................................
$13,000
Accounts payable
.......................................................................
1,200
Total liabilities
.....................................................................
14,200
Owner’s equity
Michelle Bullock, Capital
..........................................................
27,800
Total liabilities and owner’s equity
..............................
$
42,000
(b)
DIVINE COSMETICS CO.
Income Statement
For the Month Ended June 30, 2008
Revenues
Service revenue ($6,000 + $800)
....................
$6,800
Expenses
Supplies expense
................................................
$1,600
Gas and oil expense ($800 + $100)
................
900
Advertising expense
..........................................
500
Utilities expense
..................................................
300
Total expenses
............................................
3,300
Net income
.....................................................................
$
3,500
DIVINE COSMETICS CO.
Owner’s Equity Statement
For the Month Ended June 30, 2008
Michelle Bullock, Capital, June 1
............................
$
0
Add:
Investments
......................................................
$26,200
Net income
........................................................
3,500
29,700
29,700
Less:
Drawings
............................................................
1,200
Michelle Bullock, Capital, June 30
.........................
$
28,500
1-36
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
37-1
(a)
GELLER CONSULTING
Owner’s
Assets
=
Liabilities
+
Equity
Accounts
Office
Notes
Accounts
L. Geller,
Date
Cash
+ Receivable + Supplies + Equipment = Payable +
Payable
+
Capital
May
1
(
$ 8,000
)
(
$
8,000
)
Investment
2
(800)
(800)
Rent Expense
3
$500
(
$
500
)
5
(50)
(50)
Advertising Expense
9
(
3,000
)
(
3,000
)
Service Revenue
12
(700)
(700)
Drawings
15
(
$5,300
)
(
5,300
)
Service Revenue
17
(3,000)
(3,000)
Salaries Expense
20
(500)
(500)
23
(
3,000
)
(3,000)
26
(
5,000
)
$5,000
29
$2,800
(
2,800
)
30
(150)
(
(150)
Utilities Expense
(
$13,800
)
+
(
$2,300
)
+
$500
+$2,800=
$5,000
+
(
$2,800
)
+
(
$11,600
)
PROBLEM 1-4B
lOMoARcPSD|15670522
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-4B (Continued)
(b)
GELLER CONSULTING
Income Statement
For the Month Ended May 31, 2008
Revenues
Service revenue ($3,000 + $5,300)
.............................................................................
$8,300
Expenses
Salaries expense
........................................................................................
$3,000
Rent expense
........................................................................................................
800
Utilities expense
................................................................................................
150
Advertising expense
..........................................................................................
50
Total expenses
.................................................................................................................
4,000
Net income
..............................................................................................................................................
$4,300
(c)
GELLER CONSULTING
Balance Sheet
May 31, 2008
Assets
Cash
..........................................................................................................................................................
$13,800
Accounts receivable
............................................................................................................................
2,300
Supplies
............................................................................................................................................................
500
Office equipment
..................................................................................................................................
2,800
Total assets
..............................................................................................................................
$19,400
Liabilities and Owner’s Equity
Liabilities
Notes payable
$
5,000
Accounts payable
......................................................................................................................
2,800
Total liabilities
................................................................................................................
7,800
Owner’s equity
L. Geller, Capital
...................................................................................................................
11,600
Total liabilities and owner’s equity
...........................................................
$19,400
1-38
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
PROBLEM 1-5B
(a)
McKane
Selara
Gordon
Hindi
Company
Company
Company
Company
(a)
$30,000
(d)
$40,000
(g)
$124,000
(j)
$
50,000
(b)
95,000
(e)
45,000
(h)
80,000
(k)
225,000
(c)
5,000
(f)
28,000
(i)
413,000
(l)
460,000
(b)
McKANE COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2008
Capital, January 1
.........................................................
$30,000
Add:
Investment
.........................................................
$
5,000
Net income
.........................................................
15,000
20,000
50,000
Less:
Drawings
............................................................
10,000
Capital, December 31
..................................................
$
40,000
(c)
The sequence of preparing financial statements is income statement, owner’s
equity statement, and balance sheet. The interrelationship of the owner’s
equity statement to the other financial statements results from the fact that net
income from the income statement is reported in the owner’s equity statement
and ending capital reported in the owner’s equity statement is the amount
reported for owner’s equity on the balance sheet.
1-39
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-1
FINANCIAL REPORTING PROBLEM
(a)
PepsiCo’s total assets at December 31, 2005 were $31,727 million and at
December 25, 2004 were $27,987 million.
(b)
PepsiCo had $1,716 million of cash and cash equivalents at December 31, 2005.
(c)
PepsiCo had accounts payable (and other current liabilities) totaling $5,971
million on December 31, 2005 and $5,599 million on December 25, 2004.
(d)
PepsiCo reports net sales for three consecutive years as follows:
2003
$26,971 million
2004
$29,261 million
2005
$32,562 million
(e)
From 2004 to 2005, PepsiCo’s net income decreased $134 million from $4,212
million to $4,078 million.
1-40
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-2
COMPARATIVE ANALYSIS PROBLEM
(a)
(in millions)
PepsiCo
Coca-Cola
1.Total assets
$31,727
$29,427
2.Accounts receivable (net)
$
3,261
$
2,281
3.Net sales
$32,562
$23,104
4.Net income
$
4,078
$
4,872
(b)
PepsiCo’s total assets were approximately 8% greater than Coca-Cola’s total
assets, and PepsiCo’s net sales were 41% greater than Coca-Cola’s net sales. In
addition, PepsiCo’s accounts receivable were 43% greater than Coca-Cola’s
and represent 10% of its net sales. Coca-Cola’s accounts receivable amount to
9.9% of its net sales. Both PepsiCo’s and Coca-Cola’s accounts receivable are
at satisfactory levels, being comparable to a 30-day collection period.
Coca-Cola’s net income was 119.5% of PepsiCo’s. It appears that these two
companies’ operations are comparable in some ways, with Coca-Cola’s
operations slightly more profitable.
1-41
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-3
EXPLORING THE WEB
(a)
The field is normally divided into three broad areas: auditing, financial/ tax,
and management accounting.
(b)
The skills required in these areas:
People skills, sales skills, communication skills, analytical skills, ability to
synthesize, creative ability, initiative, computer skills.
(c)
The skills required in these areas differ as follows:
Financial
Management
Auditing
and Tax
Accounting
People skills
Medium
Medium
Medium
Sales skills
Medium
Medium
Low
Communication skills
Medium
Medium
High
Analytical skills
High
Very High
High
Ability to synthesize
Medium
Low
High
Creative ability
Low
Medium
Medium
Initiative
Medium
Medium
Medium
Computer skills
High
High
Very High
(d)
Some key job functions in accounting:
Auditing:
Work in audit involves checking accounting ledgers and financial
statements within corporations and government. This work is becoming
increasingly computerized and can rely on sophisticated random sampling
methods. Audit is the bread-and-butter work of accounting. This work can
involve significant travel and allows you to really understand how money is
being made in the company that you are analyzing. It’s great background!
Budget Analysis:
Budget analysts are responsible for developing and managing
an organization’s financial plans. There are plentiful jobs in this area in
government and private industry. Besides quantitative skills many budget
analyst jobs require good people skills because of negotiations involved in the
work.
1-42
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-3 (Continued)
Financial:
Financial accountants prepare financial statements based on general
ledgers and participate in important financial decisions involving mergers and
acquisitions, benefits/ERISA planning, and long-term finan-cial projections.
This work can be varied over time. One day you may be running spreadsheets.
The next day you may be visiting a customer or supplier to set up a new
account and discuss business. This work requires a good understanding of both
accounting and finance.
Management Accounting:
Management accountants work in companies and
participate in decisions about capital budgeting and line of busi-ness analysis.
Major functions include cost analysis, analysis of new contracts, and
participation in efforts to control expenses efficiently. This work often involves
the analysis of the structure of organizations. Is responsibility to spend money
in a company at the right level of our organization? Are goals and objectives to
control costs being communi-cated effectively? Historically, many management
accountants have been derided as “bean counters.” This mentality has
undergone major change as management accountants now often work side by
side with marketing and finance to develop new business.
Tax:
Tax accountants prepare corporate and personal income tax state-ments
and formulate tax strategies involving issues such as financial choice, how to
best treat a merger or acquisition, deferral of taxes, when to expense items and
the like. This work requires a thorough understanding of economics and the
tax code. Increasingly, large corpo-rations are looking for persons with both an
accounting and a legal background in tax. A person, for example, with a JD
and a CPA would be especially desirable to many firms.
(e)
Junior Staff Accountant
$36-63,000
1-43
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-4
DECISION MAKING ACROSS THE ORGANIZATION
(a)
The estimate of the $6,100 loss was based on the difference between the $25,000
invested in the driving range and the bank balance of $18,900 at March 31.
This is not a valid basis for determining income because it only shows the
change in cash between two points in time.
(b)
The balance sheet at March 31 is as follows:
CHIP-SHOT DRIVING RANGE
Balance Sheet
March 31, 2008
Assets
Cash
.........................................................................................................
$18,900
Caddy shack
..........................................................................................
8,000
Equipment
..............................................................................................
800
Total assets
...................................................................................
$
27,700
Liabilities and Owner’s Equity
Liabilities
Accounts payable ($150 + $100)
............................................
$
250
Owner’s equity
Mary and Jack Gray, Capital
...................................................
27,450
Total liabilities and owner’s equity
..............................
$
27,700
As shown in the balance sheet, the owner’s capital at March 31 is $27,450. The
estimate of $2,450 of net income is the difference between the initial investment
of $25,000 and $27,450. This was not a valid basis for determining net income
because changes in owner’s equity between two points in time may have been
caused by factors unrelated to net income. For example, there may be drawings
and/or additional capital investments by the owner(s).
1-44
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-4 (Continued)
(c)
Actual net income for March can be determined by adding owner’s drawings
to the change in owner’s capital during the month as shown below:
Owner’s capital, March 31, per balance sheet
...........................
$27,450
Owner’s capital, March 1
...................................................................
25,000
Increase in owner’s capital
..............................................................
2,450
Add:
Drawings
....................................................................................
1,000
Net income
.............................................................................................
$
3,450
Alternatively, net income can be found by determining the revenues earned
[described in (d) below] and subtracting expenses.
(d)
Revenues earned can be determined by adding expenses incurred during the
month to net income. March expenses were Rent, $1,000; Wages, $400;
Advertising, $750; and Utilities, $100 for a total of $2,250. Revenues earned,
therefore, were $5,700 ($2,250 + $3,450). Alternatively, since all revenues are
received in cash, revenues earned can be computed from an analysis of the
changes in cash as follows:
Beginning cash balance
...............................................
$25,000
Less:
Cash payments
Caddy shack
................................................
$8,000
Golf balls and clubs
...................................
800
Rent
.................................................................
1,000
Advertising
...................................................
600
Wages
.............................................................
400
Drawings
.......................................................
1,000
11,800
Cash balance before revenues
..................................
13,200
Cash balance, March 31
...............................................
18,900
Revenues earned
............................................................
$
5,700
1-45
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-5
COMMUNICATION ACTIVITY
To:
Lynn Benedict
From:
Student
I have received the balance sheet of New York Company as of December 31, 2008. A
number of items in this balance sheet are not properly reported. They are:
1.
The balance sheet should be dated as of a specific date, not for a period of time.
Therefore, it should be dated “December 31, 2008.”
2.
Equipment should be shown as an asset and reported below Supplies on the
balance sheet.
3.
Accounts receivable should be shown as an asset, not a liability, and reported
between Cash and Supplies on the balance sheet.
4.
Accounts payable should be shown as a liability, not an asset. The note payable
is also a liability and should be reported in the liability section.
5.
Liabilities and
owner’s equity should be shown on the balance sheet. Don
Wenger, Capital and Don Wenger, Drawing are not liabilities.
6.
Don Wenger, Capital and Don Wenger, Drawing are part of owner’s equity.
The Drawing account is not reported on the balance sheet but is sub-tracted
from Don Wenger, Capital to arrive at owner’s equity at the end of the period.
1-46
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-5 (Continued)
A correct balance sheet is as follows:
NEW YORK COMPANY
Balance Sheet
December 31, 2008
Assets
Cash
..................................................................................................................
$
9,000
Accounts receivable
....................................................................................
6,000
Supplies
...........................................................................................................
2,000
Equipment
.......................................................................................................
25,500
$
42,500
Liabilities and Owner’s Equity
Liabilities
Notes payable
.......................................................................................
$10,500
Accounts payable
................................................................................
8,000
Total liabilities
.............................................................................
18,500
Owner’s equity
Don Wenger, Capital ($26,000 – $2,000)
......................................
24,000
Total liabilities and owner’s equity
.......................................
$
42,500
1-47
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-6
ETHICS CASE
(a)
The students should identify all of the stakeholders in the case; that is, all the
parties that are affected, either beneficially or negatively, by the action or
decision described in the case. The list of stakeholders in this case are:
Steve Baden, interviewee.
Both Baltimore firms.
Great Northern College.
(b)
The students should identify the ethical issues, dilemmas, or other con-
siderations pertinent to the situation described in the case. In this case the
ethical issues are:
Is it proper that Steve charged both firms for the total travel costs rather
than split the actual amount of $296 between the two firms?
Is collecting $592 as reimbursement for total costs of $296 ethical behavior?
Did Steve deceive both firms or neither firm?
(c)
Each student must answer the question for himself/herself. Would you want to
start your first job having deceived your employer before your first day of
work? Would you be embarrassed if either firm found out that you double-
charged? Would your school be embarrassed if your act was uncovered?
Would you be proud to tell your professor that you collected your expenses
twice?
1-48
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
BYP 1-7
ALL ABOUT YOU: THE ETHICS OF FINANCIAL AID
(a)
Answers to the following will vary depending on students’ opinions.
(1)
This does not represent the hiding of assets, but rather a choice as to the
order of use of assets. This would seem to be ethical.
(2)
This does not represent the hiding of assets, but rather is a change in the
nature of assets. Since the expenditure was necessary, although perhaps
accelerated, it would seem to be ethical.
(3)
This represents an intentional attempt to deceive the financial aid office.
It would therefore appear to be both unethical and poten-tially illegal.
(4)
This is a difficult issue. By taking the leave, actual net income would be
reduced. The form asks the applicant to report actual net income.
However, it is potentially deceptive since you do not intend on taking
unpaid absences in the future, thus future income would be higher than
reported income.
(b)
Companies might want to overstate net income in order to potentially increase
the stock price by improving investors’ perceptions of the company. Also, a
higher net income would make it easier to receive debt financing. Finally,
managers would want a higher net income to increase the size of their
bonuses.
(c)
Sometimes companies want to report a lower income if they are nego-tiating
with employees. For example, professional sports teams fre-quently argue that
they can not increase salaries because they aren’t making enough money. This
also occurs in negotiations with unions. For tax accounting (as opposed to the
financial accounting in this course) companies frequently try to minimize the
amount of reported taxable income.
(d)
Unfortunately many times people who are otherwise very ethical will make
unethical decisions regarding financial reporting. They might be driven to do
this because of greed. Frequently it is because their superiors have put
pressure on them to take an unethical action, and they are afraid to not follow
directions because they might lose their job. Also, in some instances top
managers will tell subordinates that they should be a team player, and do the
action because it would help the company, and therefore would help fellow
employees.
1-49
Stuvia.com - The Marketplace to Buy and Sell your Study Material
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Stuvia.com - The Marketplace to Buy and Sell your Study Material
lOMoARcPSD|15670522
Powered by TCPDF (www.tcpdf.org)
Downloaded by: a_plus_work | Irfanrai_530@yahoo.com
Distribution of this document is illegal
Want to earn $1.236
extra per year?
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
Hi I need help on what is the answer for this accounting problem. Below is the pictures and the reference to help. I hope you can help me
https://drive.google.com/drive/folders/1d_SOeDa1Z66eCS0MvUSTNCWlRlFVxUSH?usp=sharing
arrow_forward
X
Cengage Digital Learning
X
CengageNOWv2 | Online teachin
x
engage
X
/takeAssignment/takeAssignment Ma in.do? invoker-assignments&takeAssignmentSession Locator=assignment-take&inprogress-false
Calculator
Print Item
Show Me How
eBook
Payroll tax entrles
Chart of AccountsStarting Question Journal
Instructions
Instructions
According to a summary of the payroll of Guthrie Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and
federal unemployment taxes.
Required:
A. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4 %, federal unemployment, 0.6%.
B. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account tides.
Next
Previous
Check My Work
US
19:39
SAMSUNG
DI
&
%
A
5
co
arrow_forward
Courses
Mastering Chernie X
2MateryCheme X
loud/modules/unproctoredTest.QuestionSheet
McCraith-Sectic x
Updte
Help Caroline Achienge S01243611acadceduLogout
all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises
Gradebook.
Extemat
kercises
Remaining Time Unimted
Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a
maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how
much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are
taxed at a rate of 27%, then how much will you have when you retire?
Round all answers to 2 decimal places.
Before taxes retirement amount $
Number
After taxes retirement amount $
Number
Submit Assignment
Quit & Save
Васк
Question Menu 4
Next
38°F Partly sunny A 0)
411 PM
11/19/202
end
home
delete
prt sc
144
4+
4-
40
num
lock
backspace
&
8.
6.
7.
home
|近
arrow_forward
Need help with question please. Thank you
arrow_forward
erd-2020 Fall T x
spurs meaning Google
Upitan
Oregon Trail Map
magnetic packag..
Señor Wooly
How to Ens Your
Board
CP1-4 Communication
There are two common causes of business and accounting fraud:
• A failure of individual character
• A culture of greed or ethical indifference within an organization
Required:
Write a brief memo describing how these two factors could lead to accounting
fraud.
Thread:
Wnte Your response as reguested above, It should be in memo format as
cholarly sources to
arrow_forward
Please help me solve it
arrow_forward
Neep help with this . Thank you
arrow_forward
Typed plz
Please provide me a quality solution as you always do reed question carefully than answer take care of plagiarism also
arrow_forward
AutoSave OFF
Home Insert Draw
Paste
Page 47 of 95
Calibri
B I U
20
Design
V
v
16916 words
50
ab
X
2
V
Layout
X
Α Α΄
A
References
Aa ▾ A
Αν
English (United States)
Mailings
=
Review
V
V
W= Packet Lecture-4
View
12/31
싫
V
Accessibility: Investigate
Tell me
30,000
V
Estimating Uncollectible Accounts
An estimate of bad debts is made at the end of the accounting period to match the cost of
credit sales (bad debt expense) with the revenue credit sales allowed the company to record
during the period. The estimate is incorporated in the company's books through an ADJUSTING
ENTRY and the entry increases the allowance for uncollectible accounts and bad debt expense.
Saved to my Mac ✓
Percent of Receivables Method (an allowance method)
management estimates a percent of ending accounts receivable they expect to be uncollectible
the ending balance of the Allowance for Uncollectible Accounts (AUA) is determined based on
the estimate (% of uncollectible accounts x ending balance of A/R, "% of A/R").…
arrow_forward
Need help with questions please. Thank you
arrow_forward
multiplymovement.com/english_multiply.pdf
WileyPLUS
WileyPLUS: MyWileyPLUS | Help I Contact Us | Log C
Weygandt, Accounting Principles, 13e
FINANCIAL/MANAGERIAL ACCOUNTING (ACC 124/125/201/20
CALCULATOR
STANDARD VIEW
PRINTER VERSION
1 BACK
NEXT
Exercise 10-13 a1-a2 (Part Level Submission) (Video)
Gill Company, organized in 2020, has the following transactions related to intangible assets.
1/2/20
Purchased patent (7-year life)
$595,000
4/1/20
Goodwill purchased (indefinite life)
360,000
7/1/20
10-year franchise
480,000
9/1/20
Research and development costs
185,000
- (a1)
Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit
account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required,
select "No Entry" for the account titles and enter 0…
arrow_forward
Online Test Window-Google Chrome
tests.mettl.com/test-window/f55ac827#/testWindow/0/20/1
EY
Accounting Assessment
Total 00:54:23
Finish Test
Section 1 of 1
Section #1 v
15
16
17
18
19
20
21
23
24
22
25
21 of 45
All
2
43
Question # 21
G Revisit
Choose the best option
Under the accrual basis of accounting, if cash is received prior to the sale, then.
Revenue is recognized when cash is received
O A liability is recognized when cash is received
O A liability is removed from the system when the cash is received
O Revenue is removed from the system when the services have been performed or the goods have
been delivered.
Next Question
Prev Question
+91-82878-03040
Zaineh | Support +1-650-924-9221
4:14 PM
meti
gRへコ伝り) A
1/16/2021
Tyne here to search
arrow_forward
please help me provide complete and correct answer for all requirements with all working for all parts answer in text please answer correct please remember answer all requirements or skip /leave for other expert thanks million thanks please double underline need answer for all requirements or skip please do not waste time or question by giving incomplete or incorrect answer please no copy paste from other answer
arrow_forward
V pioblem - Protected View
Saveu LOLTIS
Searcn
References
Mailings
Review
View
Help
n viiuses. Unless you need to edit, it's safer to stay in Protected View.·
Enable Editing
Accounting
Chapter 13 - Homework Problem
During the last week of August, Apache Arts Company's owner approaches the bank for
an $80,000 loan to be made on September 2 and repaid on November 30 with annual
interest of 12%, for an interest cost of $2,400. The owner plans to increase the store's
inventory by $60,000 during September and needs the loan to pay for inventory
acquisitions. The bank's loan officer needs more information about Apache Arts' ability
to repay the loan and asks the owner to forecast the store's November 30 cash position.
On September 1, Apache Arts is expected to have a $3,000 cash balance, $135,000 of
accounts receivable, and $100,000 of accounts payable. Its budgeted sales, merchandise
purchases, and various cash disbursements for the next three months follow:
Budgeted Figures
Sales
September…
arrow_forward
eNOWv2 | Online teachin X +
Wilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress...
A
Accounts Receivable Analysis
Xavier Stores Company and Lestrade Stores Inc. are large retail department stores. Both companies offer credit to their customers
through their own credit card operations. Information from the financial statements for both companies for two recent years is as f
(in millions):
Xavier
Lestrade
Sales
$255,500
$357,700
Credit card receivables-beginning
24,416
47,840
Credit card receivables-ending
20,384
36,832
a. Determine the (1) accounts receivable turnover and (2) the number of days' sales in receivables for both companies. Round answers
to one decimal place. Assume 365 days a year.
Xavier
Lestrade
1. Accounts receivable turnover
days
days
2. Number of days' sales in receivables
than Lestrade's. The number of days' sales in receivables is
b. Xavier's accounts receivable turnover is
for Xavier than for Lestrade. These differences…
arrow_forward
dont give answer in image format
arrow_forward
e web
Games
ACC101 Chapter 8 Mini Case - Word
O Search
raquel rodriguez
sert
Draw
Design
Layout
References
Mailings
Review
View
Help
Body)
v 11
AaBbCcDd AaBbCcDd AaBbC
U v ab x, x A
三三
I Normal
1 No Spac. Heading 1
Editing
Dictate
Sensi
A
v Aa v
A A
。田、刻T
Font
Paragraph
Styles
Voice
Sensit
Suppose Easton Company reported net receivables of $2,582 million and $2,260 million at January 31,
2019, and 2018, respectively, after subtraction allowances of $72 million and $67 million respectively.
Easton earned total revenue of $43,333 million (all on account) and recorded uncollectible account
expense of $13 million for the year ended January 31, 2019. Use the following T accounts to sort out
your answer.
1. Use this information to measure the following amounts for the year ended January 31, 2019.
a. Write-off of uncollectible receivables.
b. Collection from customers
Allowance for Uncollectible Accounts
D Focus
G
arrow_forward
g! Due to inactivity, your x
Content
* CengageNOWv2 | Online teachi x
Cengage Learning
.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
les ajoutant à la barre de favoris. Importer mes favoris maintenant.
h eBook
4 Show Me How
Accounts Receivable Analysis
A company reports the following:
Sales
$1,460,000
Average accounts receivable (net)
100,000
Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and
final answers to one decimal place. Assume a 365-day year.
a. Accounts receivable turnover
14.6 V
b. Number of days' sales in receivables
x days
Feedback
Check My Work
a. Divide sales by average accounts receivable.
b. Divide average accounts receivable by average daily sales. Average daily sales are sales divided by 365 days.
a
N
acer
arrow_forward
Intermediate Accounting 105
May I please have the solution to this exercise?
Thank you
arrow_forward
question is attached in the ss blow thanks for help
thlatpatphat
ha
arepoacited it
top4ipt4op
4itp
4iyp4
o
o4i
y
arrow_forward
ents & Tests - FINA222
Sign In in Connect
MHE Reader
A https://player-ui.mheducation.com/#/epub/sn_7cac#epubcfi(%2F6%2F158%5Bda
who paid taxes of $4,584 on a taxable income of $41,670?
6. Determining a Refund or Taxes Owed. Based on the following data, would Ann
and Carl Wilton receive a refund or owe additional taxes?
Adjusted gross income: $42,686
Standard deduction: $24,000
Child care tax credit: $100
Federal income tax withheld: $1,490
Tax rate on taxable income: 10 percent
arrow_forward
What is the net income?
arrow_forward
please help me provide complete and correct answer for all requirements with all working for all parts answer in text please answer correct please remember answer all requirements or skip /leave for other expert thanks million thanks
arrow_forward
If your answer is 41719.11 it's wrong
arrow_forward
CengageNOWv2 | Online teachin X
now.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inpr
Use the information provided for Harding Company to answer the question that follow.
Harding Company
Accounts payable
$35,197
Accounts receivable
69,364
Accrued liabilities
6,368
Cash
18,238
Intangible assets
37,028
Inventory
84,597
Long-term investments
113,221
Long-term liabilities
71,563
Notes payable (short-term)
21,578
Property, plant, and equipment
661,877
Prepaid expenses
1,533
Temporary investments
39,854
Based on the data for Harding Company, what is the amount of quick assets?
Oa. $804,566
Ob. $58,092
Oc. $1,616,692
Od. $127,456
O
H
+
C
arrow_forward
b
Preview File Edit View Go Tools Window Help
♥
mgt120h-a17.pdf
Page 3 of 10
a. When an individual account is written off.
b.
When the loss amount is known.
c. For an amount that the company estimates it will not collect.
Several times during the accounting period.
d.
a. $100,000 loss on disposal
b. $40,000 loss on disposal
c. $40,000 gain on disposal
d. $25,000 loss on disposal
D
V
O
6. A company sells an asset that originally cost $150,000 for $50,000 on December 31, 2016.
The accumulated depreciation account had a balance of $60,000 after the current year's
depreciation of $15,000 had been recorded. The company should recognize a
CC
7
Search
(Cª
Ơ
Sat Apr 15 3:05 PM
7. The average cost of a company's property and equipment is $200,000, depreciation
Cost-Volume-Profit Analysis
The Effect Of Prepaid Taxes On Assets
Debenture Valuation
And Liabili...
90
5. Under the allowance method for uncollectible accounts, Bad Debts Expense is recorded
an individual account is written off
For an…
arrow_forward
•¯¯¯**EF34
dentFunctions/Interface/acellus_engine.html?ClassID=1073315989
ip o
36
W
S
SE
SE SO
Days 1-3: $150 (initial balance)
Days 4-20: $200
($50 purchase)
Days 21-30: $50
($150 payment)
ght © 2003-2023 International Academy of Science. All Rights Reserved.
The balance on a credit card, that charges a 10.5%
APR interest rate, over a 1 month period is given in
the following table:
finance charge = $ [?]
Round to the nearest hundredth.
9
What is the finance charge, on the average daily
balance, for this card over this 1 month period?
MacBook Air
W
Enter
6
CDC
Using Alternative
Server
C
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Related Questions
- Hi I need help on what is the answer for this accounting problem. Below is the pictures and the reference to help. I hope you can help me https://drive.google.com/drive/folders/1d_SOeDa1Z66eCS0MvUSTNCWlRlFVxUSH?usp=sharingarrow_forwardX Cengage Digital Learning X CengageNOWv2 | Online teachin x engage X /takeAssignment/takeAssignment Ma in.do? invoker-assignments&takeAssignmentSession Locator=assignment-take&inprogress-false Calculator Print Item Show Me How eBook Payroll tax entrles Chart of AccountsStarting Question Journal Instructions Instructions According to a summary of the payroll of Guthrie Co., $720,000 was subject to the 6.0% social security tax and the 1.5% Medicare tax. Also, $60,000 was subject to state and federal unemployment taxes. Required: A. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4 %, federal unemployment, 0.6%. B. On December 31, journalize the entry to record the accrual of payroll taxes. Refer to the Chart of Accounts for exact wording of account tides. Next Previous Check My Work US 19:39 SAMSUNG DI & % A 5 coarrow_forwardCourses Mastering Chernie X 2MateryCheme X loud/modules/unproctoredTest.QuestionSheet McCraith-Sectic x Updte Help Caroline Achienge S01243611acadceduLogout all 2021 I Chapter 1 Consumer Finance / Section 1.5 Digital Exercises Gradebook. Extemat kercises Remaining Time Unimted Suppose you are paid $3,000 per month and your employer's 401(k) matches your contributions by 10% up to a maximum of 15% of your pay. Assuming you max-out your retirement savings and you work for 25 years, how much will the 401(k) be worth when you retire (if you can get an APR of 8% during your work years)? If you are taxed at a rate of 27%, then how much will you have when you retire? Round all answers to 2 decimal places. Before taxes retirement amount $ Number After taxes retirement amount $ Number Submit Assignment Quit & Save Васк Question Menu 4 Next 38°F Partly sunny A 0) 411 PM 11/19/202 end home delete prt sc 144 4+ 4- 40 num lock backspace & 8. 6. 7. home |近arrow_forward
- Need help with question please. Thank youarrow_forwarderd-2020 Fall T x spurs meaning Google Upitan Oregon Trail Map magnetic packag.. Señor Wooly How to Ens Your Board CP1-4 Communication There are two common causes of business and accounting fraud: • A failure of individual character • A culture of greed or ethical indifference within an organization Required: Write a brief memo describing how these two factors could lead to accounting fraud. Thread: Wnte Your response as reguested above, It should be in memo format as cholarly sources toarrow_forwardPlease help me solve itarrow_forward
- Neep help with this . Thank youarrow_forwardTyped plz Please provide me a quality solution as you always do reed question carefully than answer take care of plagiarism alsoarrow_forwardAutoSave OFF Home Insert Draw Paste Page 47 of 95 Calibri B I U 20 Design V v 16916 words 50 ab X 2 V Layout X Α Α΄ A References Aa ▾ A Αν English (United States) Mailings = Review V V W= Packet Lecture-4 View 12/31 싫 V Accessibility: Investigate Tell me 30,000 V Estimating Uncollectible Accounts An estimate of bad debts is made at the end of the accounting period to match the cost of credit sales (bad debt expense) with the revenue credit sales allowed the company to record during the period. The estimate is incorporated in the company's books through an ADJUSTING ENTRY and the entry increases the allowance for uncollectible accounts and bad debt expense. Saved to my Mac ✓ Percent of Receivables Method (an allowance method) management estimates a percent of ending accounts receivable they expect to be uncollectible the ending balance of the Allowance for Uncollectible Accounts (AUA) is determined based on the estimate (% of uncollectible accounts x ending balance of A/R, "% of A/R").…arrow_forward
- Need help with questions please. Thank youarrow_forwardmultiplymovement.com/english_multiply.pdf WileyPLUS WileyPLUS: MyWileyPLUS | Help I Contact Us | Log C Weygandt, Accounting Principles, 13e FINANCIAL/MANAGERIAL ACCOUNTING (ACC 124/125/201/20 CALCULATOR STANDARD VIEW PRINTER VERSION 1 BACK NEXT Exercise 10-13 a1-a2 (Part Level Submission) (Video) Gill Company, organized in 2020, has the following transactions related to intangible assets. 1/2/20 Purchased patent (7-year life) $595,000 4/1/20 Goodwill purchased (indefinite life) 360,000 7/1/20 10-year franchise 480,000 9/1/20 Research and development costs 185,000 - (a1) Prepare the necessary entries to record these intangibles. All costs incurred were for cash. Make the adjusting entries as of December 31, 2020, recording any necessary amortization. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0…arrow_forwardOnline Test Window-Google Chrome tests.mettl.com/test-window/f55ac827#/testWindow/0/20/1 EY Accounting Assessment Total 00:54:23 Finish Test Section 1 of 1 Section #1 v 15 16 17 18 19 20 21 23 24 22 25 21 of 45 All 2 43 Question # 21 G Revisit Choose the best option Under the accrual basis of accounting, if cash is received prior to the sale, then. Revenue is recognized when cash is received O A liability is recognized when cash is received O A liability is removed from the system when the cash is received O Revenue is removed from the system when the services have been performed or the goods have been delivered. Next Question Prev Question +91-82878-03040 Zaineh | Support +1-650-924-9221 4:14 PM meti gRへコ伝り) A 1/16/2021 Tyne here to searcharrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning