Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable , inventory. Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable. Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense. Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land. Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings . To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

please give me true answer

Sharon Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Carla Vista Company's six divisions. Sharon made the following presentation to Carla Vista's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,300." The Other Five Divisions Percy Division Total Sales $1,663,000 $100,900 $1,763,900 Cost of goods sold 978,400 76,500 1,054,900 Gross profit 684,600 24,400 709,000 Operating expenses 528,500 49,700 578,200 Net income $156,100 $(25,300 ) $130,800 In the Percy Division, cost of goods sold is $60,100 variable and $16,400 fixed, and operating expenses are $29,100 variable and $20,600 fixed. None of the Percy Division's fixed costs will be eliminated if the division is discontinued. Is Sharon right about eliminating the Percy Division? Prepare a schedule to support your answer. (Enter negative amounts using either a negative sign preceding…

hello tutor please help me

Answer 2

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Answer 6

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

Answer 7

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

Answer 8

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Answer 9

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Answer 10

Expert Solution & Answer

Answer 11

Expert Solution & Answer

Answer 12

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 13

Ch. 1 - Prob. 1Q Ch. 1 - Prob. 2Q Ch. 1 - Prob. 3Q Ch. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5Q Ch. 1 - Prob. 6Q Ch. 1 - What are the three main types of business...Ch. 1 - Prob. 8Q Ch. 1 - Prob. 9Q Ch. 1 - Prob. 10Q

Solution Summary: The author identifies assets, liabilities, stockholders' equity, revenue, or Expense (E). Assets provide value for money and future economic benefit for an organization.

Concept explainers

Videos

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Want to see the full answer?

Chapter 1 Solutions