Transaction : The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions. Accounting equation : Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners. Accounting equation is expressed as shown below: Assets = Liabilities + Equity Assets = Liabilities+ { ( Contributed capital ) + ( Retained earnings ) } Assets = Liabilities+ { ( Common stock ) + ( Revenues–Expenses–Dividends ) } To analyze : The transactions of AS, using the accounting equation in the given format

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Answer 1

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

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On January 1, 2022, Lloyd and Joan Valdez organized Tech Associates as a corporation; each contributed $75,000 cash to start the business and received 4,000 shares of common stock. The store completed its first year of operations on December 31, 2022. financial items for the year were determined: On that date, the following Cash on hand and in the bank $73,350 Amounts due from customers for the sales of merchandise $39,000 Office equipment $72,000 Amounts owed to suppliers for merchandise inventory $12,000 One-year note payable to a local bank $3,000 Retained Earnings at Dec 31, 2022 $19230 No dividends were declared or paid to shareholders during the year. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained Earnings + Net Income – Dividends = Ending Retained Earnings] to solve for net income.)

Assume that a relatively new company you and you group members are involved wilth has presented you with the following transactions for 2021 from the books of the business. This company operates one bank account to reflect all cash and cheque transactions. You are now required to read these transactions carefully then prepare the relevant documents and bocks as outlined in the requirements below. 1 Aug Started business with $150, 000 in the bank 3 Aug Bought supplies on credit from Right Way Manufacturers 24 Boxes Air Filter 96 Bottles fuel injector cleaner 48 Boxes Spark Plug 36 Boxes Brake Shoe $720.00 per box $200.00 per bottle $300.00 per box $580.00 per box $400.00 per box e 24 Boxes Disc Pads x 5 Aug Provided services for cash less 10% discount 12 small motorbike engines 6 large motorbike engines (ful service) 8 medium size motorbike engines (full service) $350.00 per engine $950.00 per engine $a00.00 per engine 7 Aug Paid Rent by cheque $5,000.00 10 Aug Paid Wages by cheque…

a) Prepare journal entries to record above transactions. b) Post to relevant ledger accounts.

Answer 2

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

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Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

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Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

Answer 6

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

Answer 7

Chapter 1, Problem 1.45AP

(1)

To determine

Transaction: The economic events which bring about any changes in the financial items of a business, and can be measured in the monetary units are referred to as transactions.

Accounting equation: Accounting equation is an accounting tool expressed in the form of equation, by creating a relation between resources or assets of a company and claims of resources to creditors and owners.

Accounting equation is expressed as shown below:

Assets = Liabilities + EquityAssets = Liabilities+{(Contributed capital)+(Retained earnings)}Assets = Liabilities+{(Common stock)+(Revenues–Expenses–Dividends)}

To analyze: The transactions of AS, using the accounting equation in the given format

Answer 8

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

Answer 9

(2) (a)

To determine

Income statement: The financial statement which reports revenues and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

To prepare: Income statement of AS for the month ended February 29, 2016

Answer 10

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

Answer 11

(b)

To determine

Statement of retained earnings: This statement reports the beginning retained earnings and all the changes which led to ending retained earnings. Net income from income statement is added to and dividends is deducted from beginning retained earnings to arrive at the end result, ending retained earnings.

To prepare: Statement of retained earnings of AS for the month ended February 29, 2016

Answer 12

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

Answer 13

(c)

To determine

Balance sheet: 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 stockholders’ equity.

To prepare: Balance sheet of AS on February 29, 2016

Answer 14

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Answer 15

Expert Solution & Answer

Answer 16

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Answer 17

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Solution Summary: The author analyzes the transactions of AS, using the accounting equation in the given format.

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