Loose Leaf for Fundamental Accounting Principles
Loose Leaf for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259687709
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
Question
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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
Check Mark

Explanation of Solution

Formula:

  Equity = Assets  liabilities

  1. The Amount of Equity on December 31,2016 is
  2.   $55,000 $24,500 = $30,500

  3. The Amount of Liabilities on December 31,2017 is
  4.   $30,500+$6,000+$8,500$3,500=$41,500

  5. The Amount of Equity on December 31,2017 is
  6.   $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
Check Mark

Explanation of Solution

Formula:

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

  2     Equity = Assets  liabilities

  1. The Amount of Equity on December 31, 2016 is
  2.   $34,000$21,500= $12,500

  3. The Amount of Equity on December 31,2017 is
  4.   $40,000$26,500 = $13,500

  5. The Amount of Net Income for year 2017 is
  6.   $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
Check Mark

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
Check Mark

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
Check Mark

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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Chapter 1 Solutions

Loose Leaf for Fundamental Accounting Principles

Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Exercise 1–16 Preparing a statement of owner’s...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 1APSACh. 1 - Prob. 2APSACh. 1 - Prob. 3APSACh. 1 - Prob. 4APSACh. 1 - Prob. 5APSACh. 1 - Prob. 6APSACh. 1 - Prob. 7APSACh. 1 - Prob. 8APSACh. 1 - Prob. 9APSACh. 1 - Prob. 10APSACh. 1 - Prob. 11APSACh. 1 - Problem 1–12AA Identifying risk and...Ch. 1 - Prob. 13APSACh. 1 - Prob. 14APSACh. 1 - Prob. 1BPSBCh. 1 - Prob. 2BPSBCh. 1 - Prob. 3BPSBCh. 1 - Prob. 4BPSBCh. 1 - Prob. 5BPSBCh. 1 - Prob. 6BPSBCh. 1 - Prob. 7BPSBCh. 1 - Prob. 8BPSBCh. 1 - Prob. 9BPSBCh. 1 - Prob. 10BPSBCh. 1 - Prob. 11BPSBCh. 1 - Prob. 12BPSBCh. 1 - Prob. 13BPSBCh. 1 - Prob. 14BPSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 8BTNCh. 1 - Prob. 9BTN
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