ACCOUNTING,CHAP.1-13
26th Edition
ISBN: 9781305088412
Author: WARREN
Publisher: CENGAGE L
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 1, Problem 1.18EX
a)
To determine
Statement of owners’ equity:
This statement reports the final balance of owner’s equity for a particular period of time, after certain adjustments like additional capital, net income from income statement and drawings. This statement is prepared after the income statement.
This financial statement reports a company’s resources (assets) and claims of creditors (liabilities) and stockholders (stockholders’ equity) over those resources. The resources of the company are assets which include money contributed by stockholders and creditors. Hence, the main elements of the balance sheet are assets, liabilities, and
To prepare: Statement of owner's equity of Company UP for the month ended April 30, 2016.
b)
To determine
To explain: the reason for preparing the statement of owner's equity before preparing the balance sheet.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Ratio of liabilities to owner's equity
The following data were taken from Mesa Company's balance sheet:
Dec. 31,2019
Dec. 31,2018
Total liabilities
$547,000
$518,000
Total owner's equity
415,000
370,000
a. Compute the ratio of liabilities to owner's equity.b. Has the creditor's risk increased or decreased from December 31,2018, to December 31, 2019?
28
The following is the Statement of Financial Position of Target Limited, a real estate company in Accra.
Target Limited
Statement of Financial Position
As at December 31, 2017
2016
GH¢ GH¢
Property, Plant & Equipment 881,121 1,058,283
Investment Property 2,889,327 2,818,287
Total Non-Current Assets…
Chapter 1 Solutions
ACCOUNTING,CHAP.1-13
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (a)...
Ch. 1 - Prob. 1.1APECh. 1 - Prob. 1.1BPECh. 1 - Accounting equation Brock Hahn is the owner and...Ch. 1 - Accounting equation Fritz Evans is the owner and...Ch. 1 - Transactions Arrowhead Delivery Service is owned...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.4BPECh. 1 - Statement of owners equity Using the income...Ch. 1 - Prob. 1.5BPECh. 1 - Balance sheet Using the following data for Ousel...Ch. 1 - Prob. 1.6BPECh. 1 - Prob. 1.7APECh. 1 - Prob. 1.7BPECh. 1 - Ratio of liabilities to owners equity The...Ch. 1 - Prob. 1.8BPECh. 1 - Types of businesses The following is a list of...Ch. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Prob. 1.5EXCh. 1 - Prob. 1.6EXCh. 1 - Accounting equation Annie Rasmussen is the owner...Ch. 1 - Asset, liability, and owners equity items Indicate...Ch. 1 - Effect of transactions on accounting equation...Ch. 1 - Effect of transactions on accounting equation a.A...Ch. 1 - Effect of transactions on owner's equity Indicate...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and owner's withdrawals The income...Ch. 1 - Net income and owner's equity for four businesses...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items Based on the data presented...Ch. 1 - Prob. 1.18EXCh. 1 - Income statement Dairy Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Prob. 1.21EXCh. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Prob. 1.24EXCh. 1 - Financial statements We-Sell Realty, organized...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Ratio of liabilities to stockholders equity Lowes...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Prob. 1.2APRCh. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On July 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Prob. 1.6APRCh. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Prob. 1.6BPRCh. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1CPCh. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CP
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Prepare the Statement of Changes in Owner's Equity for B. Maranan's Services using the following data: Service Revenues Expenses withdrawals B. Maranan, Capital, 01/01/21 Additional investments P428,235 332,432 75,000 656,000 232,500arrow_forwardUse the following financial information to calculate the owner's equity and prepare a balance sheet with vertical analysis as of December 31, 2018, for Victory Lane Sporting Goods, a sole proprietorship owned by Kyle Pressman: current assets, $157,500; property, plant, and equipment, $42,000; investments and other assets, $35,800; current liabilities, $21,100; and long-term liabilities, $54,400. (Round percents to one decimal.)arrow_forwardQuestion: The statement of financial position/ The balance sheet of STAR Ltd. at the start of the week is as follows: Balance Sheet for STAR Ltd. as at ... (start of the week) Non-current Assets JD Property, plant and equipment Furniture and fittings 180,350 39,000 219,350 Current Assets Inventories 20,000 Trade receivables 25,500 45,500 Total Assets 264,850 Equity Share capital Retained profit 80,000 110,350 190,350 Current Liabilities Bank overdraft 40,000 Trade payables 34,500 74,500 Total equity & liabilities 264,850arrow_forward
- Personal hotspot.. Used 72.4 MB Prepare the required financial statements for Metro Company Assume you are an analyst evaluating Metro Company. The following data are available in your financial analysis (unless otherwise indicated, all data are as of December 31, 2015): - 50 points Retained earnings, 12/31/2014 Gross profit margin ratio Day's sales in inventory Acid-test ratio Non current assets Day's sales in receivables Shareholder's equity to total debt Sales (all on credit) Common stock $15 par value; 10,000 shares issued and outstanding; issued at $21 per share. $98,000 25% 45 days 2.5 times $280,000 18 days 4 to 1 $920,000 Using these data, construct the December 31, 2015 balance sheet for your analysis. Operating expenses (excluding taxes and cost of goods sold for 2015) are $180,000. The tax rate is 40%. Assume a 360-day year in ratio computations. Current assets consist of cash, accounts receivable, and inventories. Your answer -> 41 •.. Honor Code | bart.. Lite…arrow_forwardQuestion 2Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows: a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)arrow_forwardll.arrow_forward
- The following are extracts from an income statement of Al Noor Company for the year ended 31 December 2020: Sales revenue RO 10,000; Cost of sales RO 8,500; Salaries expense RO 300; Advertising expense RO 200; Depreciation expense RO 100; Insurance expense RO 150; Unrealized gain on investment securities RO 1,000. The comprehensive income is: a. RO (250) b. RO 750 c. RO 1,000 d. RO 1,750arrow_forwardBased on the preceding spreadsheet, prepare a statement of owner's equity for Paoli Consulting. If a net loss is incurred or Mary Paoli, Drawing were paid, enter that amount as a negative number using a minus sign. If an amount box does not require an entry, leave it blank. Paoli Consulting Statement of Owner's Equity For the Year Ended March 31, 20Y9 Line Item Description Amount Mary Paoli, capital, April 1, 2018 ✓ X Additional investment by owner く 15,000 ✔ x Net income for the year Withdrawals Mary Paoli, capital, March 31, 2019 X xarrow_forwardipment Counts payable mer investments rrell, Withdrawals ervices revenue ent revenue alaries expense dvertising expense tilities expense $ 23,500 12,500 27,500 10,500 64,500 14,500 42,500 8,500 6,500 Saved Prepare its year-end income statement. Prepare its year-end statement of owner's equity, using net income calculated in par Complete this question by entering your answers in the tabs below. Required A Required B Prepare its year-end statement of owner's equity, using net income calculated in part a. Hint: was $0. TERRELL COMPANY Statement of Owner's Equity For Year Ended December 31 Terrell, Capital, January 1 $ 0 Add: Investments by owner Add: Net income 27,500 8,500 36,000 11,547 MAY 21 tv MacBook Proarrow_forward
- Statement of Owner's Equity; Net Loss Selected accounts from the ledger of Masterpiece Arts for the fiscal year ended April 30, 20Y2, are as follows: Angelo Phelps, Capital Angelo Phelps, Drawing Apr. 30 35,200 May 1 (20Y1) 537,100 July 31 2,300 Apr. 30 9,200 Apr. 30 9,200 Oct. 31 2,300 Jan. 31 2,300 April 30 2,300 Prepare a statement of owner's equity for the year. Masterpiece ArtsStatement of Owner's EquityFor the Year Ended April 30, 20Y2 $Angelo Phelps, capital, May 1, 20Y1 $Net loss Withdrawals Decrease in owner's equity $Angelo Phelps, capital, April 30, 20Y2 Feedback Areaarrow_forwardStatement of Owner's Equity; Net Loss Selected accounts from the ledger of Masterpiece Arts for the fiscal year ended April 30, 20Y2, are as follows: Angelo Phelps, Capital Angelo Phelps, Drawing Apr. 30 35,200 May 1 (20Y1) 537,100 July 31 2,300 Apr. 30 9,200 Apr. 30 9,200 Oct. 31 2,300 Jan. 31 2,300 April 30 2,300 Prepare a statement of owner's equity for the year. Masterpiece ArtsStatement of Owner's EquityFor the Year Ended April 30, 20Y2 $Angelo Phelps, capital, May 1, 20Y1 $Net loss Withdrawals Decrease in owner's equity $Angelo Phelps, capital, April 30, 20Y2arrow_forwardCompany E reports net income of $100,000 for 2015. Assume the income is earned evenly throughout the year. Dividends of $10,000 are paid on December 31. What will Company R report as investment income under the following ownership situations, if: a. Company R owns a 10% interest from July 1 to December 31? b. Company R owns a 10% interest from January 1 to June 30 and a 25% interest from July 1 to December 31? c. Company R owns a 30% interest from January 1 to June 30 and a 10% interest from July 1 to December 31?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Financial AccountingAccountingISBN:9781337272124Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Financial Accounting
Accounting
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
Financial And Managerial Accounting
Accounting
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:Cengage Learning,
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License