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4/11/2018
ALEKS Yvette Jackson - 04/11/2018 3:03:30 PM EDT - Copyright © 2018 UC Regents and ALEKS Corporation
https://www-awh.aleks.com/alekscgi/x/Isl.exe/1o_u-IgNsIkr7j8P3jH-lJx7HFZvJt13djia3s82hwNJCkjOXPdkFalBiKoodtE9PQsHRIrCunLjLjCrLxcL1Kypx4H3wEgmb0J1B
1.
Yvette Jackson - 04/11/2018 3:03:30 PM EDT College Principles of Accounting (Sole Proprietorship) / 1184 ACC100 Spring 2018 –
ACC100378VA016-1184-001Â (KHAN-SHAGHAGHI) Changes to owner's equity: Problem type 1
Presented below is information related to Russell Company.
Required:
Compute Drawing
. Before solving for drawing, it is helpful to review the basic equation used to determine ending
capital.
Ending capital = Beginning capital + Change in capital
Changes in capital are the result of the owner investing additional cash, net income or net loss
from operating the business, and the withdrawal of funds (drawing) by the owner.
Change in capital = Additional investments by owner + Net income - Drawing
There are two steps required to solve for drawing.
Step 1:
Calculate the amount of the change in capital.
Since drawing is one component of the change, knowing the amount of the change is necessary
to solve the problem. Modify the basic equation for capital to calculate the amount of change in
capital.
Change in capital = Ending capital - Beginning capital
= $43,200 - $33,700
= $9,500
Now that the change has been calculated, we can calculate the drawing.
Step 2:
Calculate the drawing using the following formula.
Beginning capital
Ending capital
Additional investments by owner
Net income
Drawing
$
33,700
43,200
5,000
7,100
4/11/2018
ALEKS Yvette Jackson - 04/11/2018 3:03:30 PM EDT - Copyright © 2018 UC Regents and ALEKS Corporation
https://www-awh.aleks.com/alekscgi/x/Isl.exe/1o_u-IgNsIkr7j8P3jH-lJx7HFZvJt13djia3s82hwNJCkjOXPdkFalBiKoodtE9PQsHRIrCunLjLjCrLxcL1Kypx4H3wEgmb0J1B
Drawing = Additional investments by owner + Net income - Change in capital
= $5,000 + $7,100 - $9,500
= $2,600
Here is the the answer. Copyright © 2018 UC Regents and ALEKS Corporation
Beginning capital
Ending capital
Additional investments by owner
Net income
Drawing
$
33,700
43,200
5,000
7,100
2,600
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
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Teller fee
Service charge
Subtotal
Reconciled balance
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Exercise 1-14 (Part Level Submission)
g 2021
Cheyenne Corp., a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2019.
Revenues during 2019-camping fees
$190,400
Notes payable
$81,600
1-4
Revenues during 2019-general store
63,920
Expenses during 2019
204,000
1-5
1-6
Accounts payable
14,960
Supplies on hand
3,400
Cash on hand
27,200
Common stock
27,200
Original cost of equipment
143,480
Retained earnings
?
1-8
e1-9
e 1-11
w14
v 1-5
Fair value of equipment
190,400
v (a)
Your answer is correct.
Determine Cheyenne Corp.'s net income for 2019.
11
14 (Part
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Cheyenne Corp.'s net income
50320
-4A (Part
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Exercise 17-10
At December 31, 2017, the available-for-sale debt portfolio for Sheffield, Inc. is as follows.
Unrealized
Gain (Loss)
Fair Value
Security
Cost
$(11,375 )
$68,250
$79,625
A
6,825
63,700
56,875
B
11,375
116,025
104,650
C
$247,975
6,825
$241,150
Total
1,820
Previous fair value adjustment balance-Dr.
$5,005
Fair value adjustment-Dr.
On January 20, 2018, Sheffield, Inc. sold security A for $68,705. The sale proceeds are net of brokerage fees.
Sheffield Inc. reports net income in 2017 of $546,000 and in 2018 of $637,000. Unrealized holding gains and gains equal
$182,000 in 2018.
Prepare a statement of comprehensive income for…
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