Connect 2-Semester Access Card for Fundamental Accounting Principles
22nd Edition
ISBN: 9780077632755
Author: John Wild
Publisher: McGraw-Hill Education
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Chapter 1, Problem 2BPSB
REQUIREMENT 1
To determine
To calculate:
We have to calculate the following for company V -
- Amount of equity on December 31, 2014.
- Amount of equity on December 31, 2015.
- Amount of net income/loss for the year 2015.
REQUIREMENT 1
Expert Solution
Answer to Problem 2BPSB
Solution:
- Amount of equity for the company V on December 31,2014 is $29,000
- Amount of equity for the company V on December 31,2015 is $23,000
- Amount of net/income for the year 2015 is $5500.
Explanation of Solution
Explanation:
- As per
accounting equation , total amount of asset is equivalent to the sum of total liabilities and equity.
Therefore, equity will be calculated as follows-
- As per accounting equation, total amount of asset is equivalent to the sum of total liabilities and equity. Therefore, equity will be calculated as follows-
- Calculation of net income/loss for the year 2015.
| Particulars | Amount ($) |
| Asset | 54000 |
| Less: liabilities | 25000 |
| Equity on December 31, 2014 | $29000 |
| Particulars | Amount ($) |
| Asset | 59000 |
| Less: liabilities | 36000 |
| Equity on December 31, 2015 | $23,000 |
| Particulars | Amount ($) |
| Equity on December 31,2015 | 23,000 |
| Add: owner cash withdrawal | 5,500 |
| Less: | |
| Equity on December 31,2014 | 29,000 |
| Owner investment | 5000 |
| Net loss | 5500 |
REQUIREMENT 2
To determine
To calculate:
We have to calculate the following for company W -
- Amount of equity on December 31, 2014.
- Amount of equity on December 31, 2015.
- Amount of liabilities on December 31, 2015
REQUIREMENT 2
Expert Solution
Answer to Problem 2BPSB
Solution:
- Amount of equity for the company W on December 31,2014 is $20,000
- Amount of equity for the company W on December 31,2015 is $78,000
- Amount of liabilities on December 31, 2015 is $22,000.
Explanation of Solution
Explanation:
- Calculation of amount of equity on December 31,2014
- Calculation of amount of equity on December 31,2015
- Calculation of amount of liabilities on December 31, 2015
| Particulars | Amount ($) |
| Asset | 80,000 |
| Less: liabilities | 60,000 |
| Equity on December 31, 2014 | $20,000 |
| Particulars | Amount ($) |
| Equity on December 31, 2014 | 20,000 |
| Add: net income | 40,000 |
| Owner investment | 20,000 |
| Less: owner cash withdrawal | 2,000 |
| Equity on December 31, 2015 | $78,000 |
| Particulars | Amount ($) |
| Assets on December 31,2015 | 100,000 |
| Less: Equity on December 31, 2015 | 78,000 |
| Liabilities on December 31, 2015 | $22,000 |
REQUIREMENT 3
To determine
To calculate:
REQUIREMENT 3
Expert Solution
Answer to Problem 2BPSB
We have to calculate the owner investment for company X during 2015.
Solution
The owner investment for company X during 2015 is $29,200
Explanation of Solution
Explanation:
Firstly, amount of equity will be calculated for both years.
| Particulars | Amount ($) |
| Asset | 141,500 |
| Less: liabilities | 68,500 |
| Equity on December 31, 2014 | $73,000 |
| Particulars | Amount ($) |
| Asset | 186500 |
| Less: liabilities | 65800 |
| Equity on December 31, 2015 | $120,700 |
Calculation of owner investment for company X during 2015.
| Particulars | Amount ($) |
| Equity on December 31,2015 | 120,700 |
| Add: owner cash withdrawal | 0 |
| Less: | |
| Equity on December 31,2014 | 73,000 |
| Net income | 18,500 |
| Owner investment | $29,200 |
REQUIREMENT 4
To determine
To calculate:
REQUIREMENT 4
Expert Solution
Answer to Problem 2BPSB
We have to calculate the amount of asset for company Y on December 31, 2015.
Solution
The amount of asset for company Y on December 31, 2015 is $135,100.
Explanation of Solution
Explanation:
Calculation of amount of equity on December 31, 2014
| Particulars | Amount ($) |
| Asset | 92,500 |
| Less: liabilities | 51,500 |
| Equity on December 31, 2014 | $41,000 |
Calculation of amount of equity on December 31,2015
| Particulars | Amount ($) |
| Equity on December 31, 2014 | 41,000 |
| Add: net income | 24,000 |
| Owner investment | 48,100 |
| Less: owner cash withdrawal | 20,000 |
| Equity on December 31, 2015 | $93,100 |
- Calculation of amount of asset for Company Y on December 31, 2015
| Particulars | Amount ($) |
| Equity on December 31, 2015 | 93,100 |
| Add: Liabilities on December 31, 2015 | $42,000 |
| Asset on December 31, 2015 | $135,100 |
REQUIREMENT 5
To determine
To calculate:
REQUIREMENT 5
Expert Solution
Answer to Problem 2BPSB
We have to calculate the amount of liabilities for company Z on December 31, 2014.
Solution
The amount of liabilities for company Z on December 31, 2014 is $100,000.
Explanation of Solution
Explanation:
Calculation of amount of equity on December 31, 2015
| Particulars | Amount ($) |
| Asset | 170,000 |
| Less: liabilities | 42,000 |
| Equity on December 31, 2015 | $128,000 |
Calculation of amount of equity on December 31, 2014
| Particulars | Amount ($) |
| Equity on December 31, 2015 | 128,000 |
| less: net income | 32,000 |
| Owner investment | 60,000 |
| Add : owner cash withdrawal | 8,000 |
| Equity on December 31, 2014 | $44,000 |
- Calculation of amount of liabilities for Company Z on December 31, 2014
| Particulars | Amount ($) |
| Asset on December 31, 2014 | $144,000 |
| Less: Equity on December 31, 2014 | 44,000 |
| Liabilities on December 31, 2014 | $100,000 |
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Chapter 1 Solutions
Connect 2-Semester Access Card for Fundamental Accounting Principles
Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Prob. 3DQCh. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQCh. 1 - Describe the internal role of accounting for...Ch. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - What are some accounting-related professions?
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. 34DQCh. 1 - Prob. 35DQCh. 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 - Classify each of the following items as assets...Ch. 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 - (
Provide an example of a transaction that...Ch. 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. 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 - Prob. 12APSACh. 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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