Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet . Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet. Account Payables : For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities. Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity. (1) To find : The equity and liabilities of company A

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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 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500

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Please make a trial balance, adjusted trial balance, Income statement. end balance ,owners equity statement, Balance sheet , Cash flow statement ,Cash end balance

Activity Based Costing - practice problem Fontillas Instrument, Inc. manufactures two products: missile range instruments and space pressure gauges. During April, 50 range instruments and 300 pressure gauges were produced, and overhead costs of $89,500 were estimated. An analysis of estimated overhead costs reveals the following activities. Activities 1. Materials handling 2. Machine setups Cost Drivers Number of requisitions Number of setups Total cost $35,000 27,500 3. Quality inspections Number of inspections 27,000 $89.500 The cost driver volume for each product was as follows: Cost Drivers Instruments Gauge Total Number of requisitions 400 600 1,000 Number of setups 200 300 500 Number of inspections 200 400 600 Insructions (a) Determine the overhead rate for each activity. (b) Assign the manufacturing overhead costs for April to the two products using activity-based costing.

Bodhi Company has three cost pools and two doggie products (leashes and collars). The activity cost pool of ordering has the cost drive of purchase orders. The activity cost pool of assembly has a cost driver of parts. The activity cost pool of supervising has the cost driver of labor hours. The accumulated data relative to those cost drivers is as follows: Expected Use of Estimated Cost Drivers by Product Cost Drivers Overhead Leashes Collars Purchase orders $260,000 70,000 60,000 Parts 400,000 300,000 500,000 Labor hours 300,000 15,000 10,000 $960,000 Instructions: (a) Compute the activity-based overhead rates. (b) Compute the costs assigned to leashes and collars for each activity cost pool. (c) Compute the total costs assigned to each product.

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 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500

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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 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500

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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 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500

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Answer 5

Chapter 1, Problem 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500

Answer 6

Chapter 1, Problem 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

Answer 7

Chapter 1, Problem 2APSA

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

Equity: Equity is the value of an asset less the amount of all liabilities on that asset. It can be represented with the accounting equation: Assets -Liabilities = Equity.

(1) To find: The equity and liabilities of company A

Answer 8

Expert Solution

Explanation of Solution

Formula:

Equity = Assets – liabilities

The Amount of Equity on December 31,2016 is

$55,000− $24,500 = $30,500

The Amount of Liabilities on December 31,2017 is

$30,500+$6,000+$8,500−$3,500=$41,500

The Amount of Equity on December 31,2017 is

$58,000−$41,500=$16,500

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

Answer 13

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(2)To find: The equity and liabilities of company B and also its net income

Answer 14

Expert Solution

Explanation of Solution

Formula:

1. Net Income = Closing Equity−Opening Equity − Owner investments + Owners cash withdrawals

2 Equity = Assets – liabilities

The Amount of Equity on December 31, 2016 is

$34,000−$21,500= $12,500

The Amount of Equity on December 31,2017 is

$40,000−$26,500 = $13,500

The Amount of Net Income for year 2017 is

$13,500−$12500−$1,400+$2,000=$1600

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

Answer 19

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

Account Payables: For delivered goods or services, the cash owed by the business which they need to pay to their suppliers is called account payables. In the balances sheet, the account payables are shown as liabilities.

(3) To find: The amount of assets for company C on December 31, 2017

Answer 20

Expert Solution

Explanation of Solution

Opening Equity= $24,000 – $9,000 = $15,000Closing Equity= $ 15,000+$9,750+$8,000−$5,875=$26,875Assets = $26,875+$29,000 = $55,875

Answer 21

Expert Solution

Answer 22

Expert Solution

Answer 23

Expert Solution

Answer 24

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

Answer 25

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(4) To find: The computation of the amount of investment for company D during the year 2017

Answer 26

Expert Solution

Explanation of Solution

Opening equity = $60,000−$40,000=$20,000Closing equity = $85000−$24000 = $61,000Amount of investment = Closing Equity− Opening Equity− Net Income + Withdrawals$61,000−$20,000−$14,000 =$27,000

Answer 27

Expert Solution

Answer 28

Expert Solution

Answer 29

Expert Solution

Answer 30

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500

Answer 31

To determine

Concept introduction:

Asset: A resource which will generate a cash flow in a future for an individual, company or corporation is known as an asset. It will have an economic value and helps to reduce expenses, benefits the firm’s operations and improve sales. An asset is mentioned on the credit side of the balance sheet.

Liabilities: During the course of the business operations, an obligation or the company’s debit that arises is called liabilities. Mortgages, accounts payables, accrued expenses; loans are recorded on the right hand side of the balance sheet.

(5) To find: The computation of the amount of liabilities for company E on December 31, 2016

Answer 32

Expert Solution

Explanation of Solution

Closing Equity = $113,000−$70,000 = $43,000Opening Equity = Closing Equity −Owner investments− Net income+ Owner cash withdrawals$43,000−$6,500−$20,000+$11,000=$27,500Liabilities for Dec. 31 2016= Assets – Equity =$119,000−$27,500=$91,500