Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 12E
Exercise 1-12A Differences between interest and dividends
Assume that Harris Company acquires $3,600 cash from creditors and $4,200 cash from investors.
Required
- a. Explain the primary differences between investors and creditors.
- b. If Harris has a net income of $2,000 and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive?
- c. If Harris has a net loss of $2,000 cash and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive?
- d. If Harris has a net loss of $4,900 cash and then liquidates, what amount of cash will the creditors receive? What amount of cash will the investors receive?
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Exercise 11-21A (Static) Interpreting the effects of business liquidation on creditors and owners LO 11-10
Assume that Harris Company acquires $3,600 cash from creditors and $4,200 cash from investors.
Required
b. If Harris Company has net income of $2,000 and then liquidates, what amount of cash will the creditors receive? What amount of
cash will the investors receive?
Creditors receive
Investors receive
c. If Harris Company has a net loss of $2,000 cash and then liquidates, what amount of cash will the creditors receive? What amount of
cash will the investors receive?
Creditors receive
Investors receive
d. If Harris Company has a net loss of $4,900 cash and then liquidates, what amount of cash will the creditors receive? What amount of
cash will the investors receive?
Creditors receive
Investors receive
D
Question 6
Jaffers Corporation has a current ratio (defined as current assets dividend by current liabilities) of
1.7 as of the end of 2020. Which of the following transaction would increase the current ratio?
O Jaffers receives payment of an outstanding account receivable.
O Jaffers pays an outstanding long-term liability
Jaffers purchases more inventory on account.
Jaffers issues long-term debt and receives cash
Question 7
Quantum, LLC. Reported net income of $8,840,984 and a net cash inflow from operations of
$9,820,659 for 2021. Quantum, LLC. used the straight-line depreciation method to determine
depreciation expense for 2021 of $1,729,100. If Quantum, LLC. had used the double-declining
balance depreciation method, depreciation expense for 2021 would have been $2.950,000.
Required: What would cash flow from operations have been if Quantum, LLC. had used the double-
declining balance method?
Enter your answer in dollar with no $ or commas
24
range the following items in proper balance sheet presentation: (Be sure to list the assets in order of their liquidity. Input all
swers as positive values.)
Accumulated amortization
Retained earnings
Cash
Bonds payable
Accounts receivable
Plant and equipment-original cost
Accounts payable
Allowance for bad debts
Common stock, 100,000 shares outstanding
Inventory
Preferred stock, 1,000 shares outstanding
Marketable securities
Investments
Notes payable
$230,000
195,300
12,000
136,000
51,500
700,000
42,000
5,200
172,000
73,000
60,000
20,000
22,000
38,000
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Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
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