2 Semester Cengage Now, Warren Accounting
26th Edition
ISBN: 9781305662308
Author: WARREN
Publisher: Cengage
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Chapter 1, Problem 1.5BPE
To determine
Statement of owners’ equity:
This statement reports the beginning owner’s equity and all the changes which led to ending owners’ equity. Additional capital, net income from income statement is added to and drawings are deducted from beginning owner’s equity to arrive at the end result, ending owner’s equity.
To prepare: Statement of Owners’ Equity of ST Service for the year ended August 31, 2016
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Statement of Owner's Equity
Xavier Heffner owns and operates Heffner Advertising Services. On January 1, 2018, Xavier Heffner, Capital had a balance of $255,100. During the year, Xavier invested an additional $12,800 and withdrew $89,300. For the year ended December 31, 2018, Heffner Advertising Services reported a net income of $72,300.
Prepare a statement of owner's equity for the year ended December 31, 2018. Use the minus sign to indicate negative values.
The following balances were retrieved from the records of Carlo's Janitorial Services for the year ended December 31, 2016:
•Capital, January 1, 2016 P 500,000
•Withdrawals P 100,000
•Additional Investments P 50,000
•Net Loss P 45,000
Prepare a Statement of Changes in Owner's Equity
Financial Statements
We-Sell Realty, organized August 1, 2016, is owned and operated by Omar Farah.
We-Sell Realty
Income Statement
August 31, 2016
Sales commissions
$140,000
Expenses:
Office salaries expense
$87,000
Rent expense
18,000
Automobile expense
7,500
Miscellaneous expense
2,200
Supplies expense
1,150
Total expenses
115,850
Net income
$25,000
Omar Farah
Statement of Owner's Equity
August 31, 2015
Omar Farah, capital, August 1, 2016
$0
Less withdrawals during August
10,000
$(10,000)
Investment on August 1, 2016
15,000
$5,000
Net income for August
25,000
Omar Farah, capital, August 31, 2016
$30,000
Balance Sheet
For the Month Ended August 31, 2016
Assets
Liabilities
Cash
$8,900
Accounts receivable
$38,600
Accounts payable
22,350
Supplies
4,000
Owner's Equity
Omar Farah, capital
30,000
Total assets
$31,250
Total liabilities and owner's equity…
Chapter 1 Solutions
2 Semester Cengage Now, Warren Accounting
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
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- Financial Statements We-Sell Realty, organized August 1, 2016, is owned and operated by Omar Farah. We-Sell Realty Income Statement August 31, 2016 Sales commissions $140,000 Expenses: Office salaries expense $87,000 Rent expense 18,000 Automobile expense 7,500 Miscellaneous expense 2,200 Supplies expense 1,150 Total expenses 115,850 Net income $25,000 Omar Farah Statement of Owner's Equity August 31, 2015 Omar Farah, capital, August 1, 2016 $0 Less withdrawals during August 10,000 $(10,000) Investment on August 1, 2016 15,000 $5,000 Net income for August 25,000 Omar Farah, capital, August 31, 2016 $30,000 Balance Sheet For the Month Ended August 31, 2016 Assets Liabilities Cash $8,900 Accounts receivable $38,600 Accounts payable 22,350 Supplies 4,000 Owner's Equity Omar Farah, capital 30,000 Total assets $31,250 Total liabilities and owner's equity…arrow_forwardThe Owner's Capital has a beginning balance of P626,000. The owner gave P130,000 additional contribution during the year. Based on the Statement of Comprehensive Income. net income for the year was P355,000. How much money did the owner withdrew from the business? Accounts Payable Accounts Receivable Accrued Expenses Accumulated Depreciation Cash Inventory Investments Your answer Mortgage Payable 57,000 65,000 Notes Payable 37,000 Notes Receivable Your answer 110,000 Owner, Capital 91,000 Prepaid Expenses 89,000 Property, Plant and Equipment 143,000 Unearned Revenue 400,000 130,000 283,000 ? 64,000 850,000 18,000 An entity began October with office supplies of P16,500. During the month, the entity purchased supplies of P27,100. On October 30, supplies on hand totaled P21,200. How much should be recorded as supplies expense for the month?arrow_forwardShane Sunland began a business, Sunland Company, on January 1, 2021, with an investment of $105,000. The company had the following assets and liabilities on the dates indicated: December 31 Total Assets Total Liabilities 2021 $355,000 $200,000 2022 440,000 285,000 2023 535,000 310,000 Use the accounting equation and the change in owner's equity during the year to calculate the profit (or loss) for: a) 2021, assuming Shane Sunland's drawings were $50,000 for the year. b) 2022, assuming Shane Sunland's made an additional investment of $51,000 and had no drawings in 2022. c) 2023, assuming Shane Sunland's made an additional investment of $10,000 and his drawings were $40,000 for the year. Please explain for all questions, thank you.arrow_forward
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