Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet , income statement, statement of cash flows and statement of change in equity. Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule Assets = Liabilities + equity Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period. Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash. 1. To determine: The following about company V. a. Amount of equity as on December 31, 2016. b. Amount of equity as on December 31, 2017. c. Net income or loss for the year 2017.

Question

Want to see more full solutions like this?

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 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

General accounting

Helen is a sole trader who runs a small bakery. She wants to prepare a cash budget for the first quarter of the year (January to March) to manage her cash flows. You are provided with the following details: 1. Budgeted sales: November £10,000 December £12,000 January £15,000 February £16,000 March £18,000 40% of sales are cash sales, and the remaining 60% are credit sales. Credit customers pay 50% of their balance in the month following the sale and the remaining 50% two months after the sale. 2. Purchases each month are 60% of sales for that month. Helen purchases on credit and pays her suppliers 50% in the month following the purchase, and the remaining 50% two months later. 3. Helen plans to purchase new equipment worth £5,000 in February, payable in March. 4. Helen will make drawings of £500 per month starting in January. 5. The budgeted expenses figures for the three months as follows: Rent Salaries Utilities Other expenses January £2,000 £1,500 £500 £1,250 February March £2,000…

?!

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 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

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 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 1, Problem 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Answer 6

Chapter 1, Problem 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

Answer 7

Chapter 1, Problem 2BPSB

To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Answer 8

Expert Solution

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 54, 000 - $ 25, 000 = $ 29, 000$

b. Amount of equity as on December 31, 2017=$23,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 59, 000 - $ 36, 000 = $ 23, 000$

c. Net income or loss for the year 2017 is the loss of $5,500.

$N e t i n c o m e / l o s s = C l o s i n g e q u i t y + C a s h w i t h d r a w a l s - O w n e r i n v e s t m e n t s - o p e n i n g e q u i t y$

$\begin{array}{l} = $ 23, 000 + $ 5, 500 - $ 5, 000 $ - $ 29, 000 \\ = - $ 5, 500 \end{array}$

2.

Answer 9

Expert Solution

Answer 10

Expert Solution

Answer 11

Expert Solution

Answer 12

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

Answer 13

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Answer 14

Expert Solution

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

$E q u i t y = A s s e t s - L i a b i l i t i e s = $ 80, 000 - $ 60, 000 = $ 20, 000$

b. Amount of equity as on December 31, 2017=$78,000

$C l o s i n g e q u i t y = O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 20, 000 + $ 20, 000 - $ 2, 000 + $ 40, 000$

c. Amount of liabilities as on December 31, 2017 is $22,000

$L i a b i l i t i e s = A s s e t s - E q u i t y$

$= $ 100, 000 - $ 78, 000 = $ 22, 000$

3.

Answer 15

Expert Solution

Answer 16

Expert Solution

Answer 17

Expert Solution

Answer 18

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

Answer 19

To determine

To Compute: The amount of owner investment for company X during 2017.

Answer 20

Expert Solution

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 141, 500 - $ 68, 500 = $ 73, 000$

Amount of equity on December 2017 = Assets - Liabilities

$= $ 186, 500 - $ 65, 800 = $ 120, 700$

Owner investment = Closing equity $-$ opening equity $-$ Net income $-$ cash withdrawals

$\begin{array}{l} = $ 120, 700 - $ 73, 000 - $ 18, 500 - 0 \\ = $ 29, 200 \end{array}$

4.

Answer 21

Expert Solution

Answer 22

Expert Solution

Answer 23

Expert Solution

Answer 24

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

Answer 25

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Answer 26

Expert Solution

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

$= $ 92, 500 - $ 51, 500 = $ 41, 000$

Amount of equity on December 2017 =

$O p e n i n g e q u i t y + O w n e r i n v e s t m e n t - C a s h w i t h d r a w a l s + N e t i n c o m e / l o s s$

$= $ 41, 000 + $ 48, 100 - $ 20, 000 + $ 24, 000 = $ 93, 100$

Assets on December 31, 2017 $= L i a b i l i t i e s + E q u i t y$

$= $ 42, 000 + $ 93, 100 = $ 135, 100$

5.

Answer 27

Expert Solution

Answer 28

Expert Solution

Answer 29

Expert Solution

Answer 30

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Answer 31

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Answer 32

Expert Solution

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 $= A s s e t s - L i a b i l i t i e s$

$= $ 170, 000 - $ 42, 000 = $ 128, 000$

Amount of equity on December 2016 =

$C l o s i n g e q u i t y - O w n e r i n v e s t m e n t + C a s h w i t h d r a w a l s - N e t i n c o m e / l o s s$

$= $ 128, 000 - $ 60, 000 + $ 8, 000 - $ 32, 000 = $ 44, 000$

Liabilities on December 31, 2016 $= A s s e t s - E q u i t y$

$= $ 144, 000 - $ 44, 000 = $ 100, 000$

Answer 33

Expert Solution

Answer 34

Expert Solution

Answer 35

Expert Solution

Answer 36

Ch. 1 - Prob. 1DQ Ch. 1 - Technology is increasingly used to process...Ch. 1 - Prob. 3DQ Ch. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQ Ch. 1 - Describe the internal role of accounting for...Ch. 1 - Prob. 7DQ Ch. 1 - Prob. 8DQ Ch. 1 - Prob. 9DQ Ch. 1 - What are some accounting-related professions?

Explanation of Solution

The following about company W. a. Amount of equity as on December 31, 2016. b. Amount of equity as on December 31, 2017. c. Amount of liabilities as on December 31, 2017.

Explanation of Solution

To Compute: The amount of owner investment for company X during 2017.

Explanation of Solution

To Compute: The amount of assets for company Y on December 31, 2017.

Explanation of Solution

To Compute: The amount of liabilities for company Z on December 31, 2016.

Explanation of Solution

Want to see more full solutions like this?

Chapter 1 Solutions

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.