Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
5th Edition
ISBN: 9780134078939
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 1, Problem 1.54CP
Using the
Daniels Consulting began operations and completed the following transactions during December 2016:
| Dec. 2 | Stockholders contributed $20,000 cash in exchange for common stock. |
| 2 | Paid monthly office rent, $2,000. |
| 3 | Paid cash for a computer, $3,600. This equipment is expected to remain in service for five years. |
| 4 | Purchased office furniture on account, $3,000. The furniture should last for five years. |
| 5 | Purchased office supplies on account, $800. |
| 9 | Performed consulting service for a client on account, $2,500. |
| 12 | Paid utilities expenses, $150. |
| 18 | Performed service for a client and received cash of $2, 1 00. |
| 21 | Received $2,400 in advance for client service to be performed in the future. (This increases the Unearned Revenue account, which is a liability. This account will be explained in more detail in Chapter 2.) |
| 21 | Hired an administrative assistant to be paid $2,055 on the 20th day of each month. The secretary begins work immediately. |
| 26 | Paid $200 on account. |
| 28 | Collected $400 on account. |
| 30 | Cash dividends of $1,000 were paid to stockholders. |
Requirements
- 1. Analyze the effects of Daniels Consulting’s transactions on the accounting equation. Use the format of Exhibit 1-6, and include these headings: Cash;
Accounts Receivable ; Office Supplies; Equipment; Furniture; Accounts Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Rent Expense; and Utilities Expense. - 2. Prepare the income statement of Daniels Consulting for the month ended December 31, 2016.
- 3. Prepare the statement of
retained earnings for the month ended December 31, 2016. - 4. Prepare the
balance sheet as of December 31, 2016. - 5. Calculate the return on assets for Daniels Consulting for December, 2016.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Sage Hill Inc. had the following transactions involving current assets and current liabilities during February 2017.
Feb. 3
Collected accounts receivable of $18,600.
7
Purchased equipment for $33,200 cash.
11
Paid $2,000 for a 1-year insurance policy.
14
Paid accounts payable of $14,600.
18
Declared cash dividends, $8,200.
Additional information:As of February 1, 2017, current assets were $132,700 and current liabilities were $34,600.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.)
Current ratio as of
Feb. 1, 2017
:1
Feb. 3
:1
Feb. 7
:1
Feb. 11
:1
Feb. 14
:1
Feb. 18
:1
A company's January 1, 2016 balance sheet reported total assets of $150,000 and total liabilities of $60,000.
During January 2016, the company completed the following transactions: (A) paid a note payable using $10,000
cash (no interest was paid); (B) collected a $9,000 accounts receivable; (C) paid a $5,000 accounts payable; and (D)
purchased a truck for $5,000 cash and by signing a $20,000 note payable from a bank. The company's January 31,
2016 balance sheet would report which of the following?
Select one:
a.
Stockholder's
Assets
Liabilities
Equity
$170,000
$100,000
$70,000
b.
Stockholder's
Assets
Liabilities
Equity
$160,000
$75,000
$85,000
С.
Stockholder's
Assets
Liabilities
Equity
$150,000
$60,000
$90,000
d.
Stockholder's
Assets
Liabilities
Equity
$155,000
$65,000
$90,000
The following summarized transactions occurred in December 2020 in Syco Co.
Dec 1
Purchased plant and equipment for $515 in cash.
2
Borrowed $758 from a bank, signing a note payable.
5
Provided $37,522 in service to customers, with $27,250 on account and the rest received in cash.
9
Paid $4,300 cash on accounts payable.
14
Purchased $30,449 inventory on account.
18
Paid salaries, $3,500.
22
Received $37,410 on account paid by customers.
26
Purchased and used fuel of $750 in delivery vehicles during the year (paid for in cash).
31
Incurred $68 in utility usage during the year; paid $55 in cash and owed the rest on account.
Required:
Prepare journal entries for those transactions.
Chapter 1 Solutions
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Ch. 1 - Prob. 1QCCh. 1 - Prob. 2QCCh. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the a. financial...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - Prob. 8RQCh. 1 - Prob. 9RQCh. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - Prob. 13RQCh. 1 - Prob. 14RQCh. 1 - Prob. 15RQCh. 1 - Prob. 16RQCh. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for return on assets...Ch. 1 - Identifying users of accounting information For...Ch. 1 - Prob. 1.2SECh. 1 - Prob. 1.3SECh. 1 - Prob. 1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Using the accounting equation Kenmore Handyman...Ch. 1 - Using the accounting equation Joshs Overhead Doors...Ch. 1 - Identifying accounts Consider the following...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 - Prob. 1.12SECh. 1 - Use the following injo17nation to answer Short...Ch. 1 - Prob. 1.14SECh. 1 - Prob. 1.15SECh. 1 - Calculating Return on Assets (ROA) Refined Water...Ch. 1 - Prob. 1.17ECh. 1 - Prob. 1.18ECh. 1 - Prob. 1.19ECh. 1 - Using the accounting equation Compute the missing...Ch. 1 - Using the accounting equation Green City Builders...Ch. 1 - Prob. 1.22ECh. 1 - Using the accounting equation During 2016,...Ch. 1 - Using the accounting equation The records of...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Prob. 1.28ECh. 1 - Using the accounting equation to analyze business...Ch. 1 - Preparing the financial statements Estella Osage...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Use the following information to answer Exercises...Ch. 1 - Preparing the statement of cash flows For each...Ch. 1 - Preparing the statement of cash flows Bean Town...Ch. 1 - Calculating return on assets (ROA) Alec Appliance...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Preparing financial statements Presented here are...Ch. 1 - Preparing financial statements Click a Pix...Ch. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Prob. 1.45APCh. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.47BPCh. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. 1.49BPCh. 1 - Prob. 1.50BPCh. 1 - Preparing financial statements The bookkeeper of...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Lets examine a case using Gregs Tunes and Sals...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1CTFCCh. 1 - This and similar cases in later chapters focus on...
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
- A company's January 1, 2014 balance sheet reported total assets of $163,000 and total liabilities of $66,500. During January 2014, the company completed the following transactions: (A) paid a note payable using $16,500 cash (no interest was paid); (B) collected a $15,500 accounts receivable; (C) paid a $6,300 accounts payable; and (D) purchased a truck for $6,300 cash and by signing a $26,500 note payable from a bank. The company's January 31, 2014 balance sheet would report which of the following? Assets Liabilities Stockholders' Equityarrow_forwardRequired information [The following information applies to the questions displayed below.] Leach Inc. experienced the following events for the first two years of its operations: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $100,000 of services on account. 3. Provided $35,000 of services and received cash. 4. Collected $65,000 cash from accounts receivable. 5. Paid $14,000 of salaries expense for the year. 6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending accounts receivable balance will be uncollectible. 2019: 1. Wrote off an uncollectible account for $750. 2. Provided $120,000 of services on account. 3. Provided $30,000 of services and collected cash. 4. Collected $102,000 cash from accounts receivable. 5. Paid $20,000 of salaries expense for the year. 6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 6 percent of the ending…arrow_forwardIII. Balance sheet of Company Beta dated 31.12.2015 showed the following accounts: a) fixed assets 60 000* b) trade receivables 12 500 c) cash in bank account 7 500 d) share capital 50 000 e) trade payables 20 000 f) long-term liabilities 10 000 accumulated depreciation of fixed assets 10 000 In January the company noted the following economic transactions: 1. Materials worth 6 500 were taken from the warehouse and used: a) for production purposes 5 000 b) as a casual office use 1 500 2. Company calculated salaries: a) of manufacturing workers 3 000 b) of administrative staff 5 000 c) of sales representatives 2000 3. Company paid by bank transfer a water bill: a) 1 000 for electricity used for production of goods b) 500 for electricity used for office purposes 4. Company paid 1 200 for interest on long-term liabilities 5. Company received a payment from customer 6 500 6. 1000 units of finished products were produced and taken into warehouse at manufacturing cost. Work in progress was…arrow_forward
- Required information [The following information applies to the questions displayed below.] Cougar Plastics Company has been operating for three years. At December 31, 2014, the accounting records reflected the following: Cash $ 23,000 Accounts payable 19,000 $ Investments (short-term) 3,500 4,000 Accrued liabilities payable Notes payable (short- term) Accounts receivable 4,800 5,300 47,000 Inventory 26,000 Notes payable (long-term) 10,700 Notes receivable (long- term) 2,000 Common stock 96,300 Equipment 53,000 Additional paid-in capital 43,300 Factory building Intangibles 108,000 Retained earnings 4,300 During the year 2015, the company had the following summarized activities: a. Purchased short-term investments for $7,100 cash. b. Lent $5,200 to a supplier who signed a two-year note. c. Purchased equipment that cost $18,000; paid $5,200 cash and signed a one-year note for the balance. d. Hired a new president at the end of the year. The contract was for $94,000 per year plus options…arrow_forwardDuring 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31. 1. Issued common shares to investors in exchange for $ 90,000 in cash. 2. Borrowed $ 46,000 cash from the bank, due 2020. 3. Purchased delivery vehicles for $ 61,000 cash. 4. Received $ 24,000 from customers for services provided. 5. Purchased supplies for $ 3,700 on account. 6. Paid rent of $ 5,500. 7. Performed services on account for $ 9,000. 8. Paid salaries of $ 28,000. 9. Declared and paid a dividend of $ 12,000 to shareholders. 10. Paid income taxes of $ 200 for the month. Indicate the effect of each transaction on the accounting equation. Use the following format. (If an amount reduces the account balance then enter with a negative sign preceding the number e.g. -15,000 or in parenthesis e.g. (15,000).) Assets = Liabilities + Shareholders’ Equity…arrow_forwardDuring 2018, its first year of operations as a delivery service, Carla Vista Corp. entered into the following transactions. The fiscal year end for Carla Vista is December 31. 1. Issued common shares to investors in exchange for $ 90,000 in cash. 2. Borrowed $ 46,000 cash from the bank, due 2020. 3. Purchased delivery vehicles for $ 61,000 cash. 4. Received $ 24,000 from customers for services provided. 5. Purchased supplies for $ 3,700 on account. 6. Paid rent of $ 5,500. 7. Performed services on account for $ 9,000. 8. Paid salaries of $ 28,000. 9. Declared and paid a dividend of $ 12,000 to shareholders. 10. Paid income taxes of $ 200 for the month. Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Sr No Account Titles and…arrow_forward
- Having issue with the attached problem. Thanksarrow_forwardThe following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. [These are the same transactions analyzed in Exercise 2–1, when we determined their effect on elements of the accounting equation.] 1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash. 2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed. 3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system. 4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000. 5. Paid $5,000 in rent on the warehouse building for the month of March. 6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016. 7. Paid $70,000 on account for the merchandise purchased in 3. 8. Collected $55,000 from customers on account. 9. Recorded depreciation expense of…arrow_forwardThe following financial information is from Shovels Construction Company for 2012: Accounts Payable $15,000 Retained earnings $47,500 Buildings 80,000 Supplies 40,000 Cash 10,500 Note payable (due in 18 months) 35,000 Accounts Receivable 9,500 Interest payable 3,000 Sales tax payable 4,500 Common stock 35,000 What is the amount of current assets, assuming the accounts above reflect normal activity?arrow_forward
- Use the following information for questions. The following items are taken from the financial statements of Maria Company for the year ending December 31, 2008. Accounts Payable 18,000 Accounts Receivable 11,000 Accumulated Depreciation - Equipment 28,000 Advertising Expense 21,000 Cash 15,000 Maria Capital (01/01/2008) 102,000 Maria Drawing 14,000 Depreciation Expense 12,000 Insurance Expense 3,000 Note Payable, due 6/30/2009 70,000 Prepaid Insurance (12-month policy) 6,000 Rent Expense 17,000 Salaries Expense 32,000 Service Revenue 133,000 Supplies 4,000 Supplies Expense 6,000 Equipment 210,000 What is the company's net income for the year ending December 31, 2008? What is the balance that would be reported for owner's equity at December 31, 2008? • What are the total current assets, book value of the equipment, total current labilities, total long-term liabilities, and total liabilities and owner's equity at December 31, 2008?arrow_forwardColeman Motors, Inc., was formed on January 1,2018. The following transactions occurred during 2018:On January 1, 2018, Coleman issued its common stock for $350,000. Early in January,Coleman made the following cash payments:a. $140,000 for equipmentb. $175,000 for inventory (five cars at $35,000 each)c. $19,000 for 2018 rent on a store buildingIn February, Coleman purchased six cars for inventory on account. The cost of this inventorywas $282,000 ($47,000 per car). Before year-end, the company paid off $197,400 of this debt.The company uses the first-in, first-out (FIFO) method to account for its inventory.During 2018, Coleman sold six autos for a total of $426,000. Before year-end, it had collected 90% of this amount.The business employs three people. The combined annual payroll is $90,000, of which Coleman owes $5,000 at year-end. At the end of the year, the company paid income taxes of $14,000.Late in 2018, Coleman declared and paid cash dividends of $29,000.For equipment, Coleman…arrow_forwardSkysong, Inc. had the following transactions involving current assets and current liabilities during February 2019. Feb. 3 Collected accounts receivable of $18,900. 7 Purchased equipment for $36,800 cash. 11 Paid $3,500 for a 1-year insurance policy. 14 Paid accounts payable of $12,400. 18 Declared cash dividends, $8,500. Additional information:As of February 1, 2019, current assets were $135,000 and current liabilities were $35,400.Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.) Current ratio as of February 1, 2019 enter current ratio :1 Feb. 3 enter the current ratio as of February 3 :1 Feb. 7 enter the current ratio as of February 7 :1 Feb. 11 enter the current ratio as of February 11 :1 Feb. 14 enter the current ratio as of February 14 :1 Feb. 18 enter the current ratio as of February 18 :1arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License