Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization. Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity. Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns. Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business. To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

Question

Want to see the full answer?

Answer 1

Question

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Amount will accounts receivable be reported on the balance sheet?

Landon Manufacturing plans to produce 25,000 units next period at a denominator activity of 50,000 direct labor hours. The direct labor wage rate is $14.00 per hour. The company's standards allow 2.5 yards of direct materials for each unit of product; the material costs $9.00 per yard. The company's budget includes a variable manufacturing overhead cost of $2.50 per direct labor hour and fixed manufacturing overhead of $240,000 per period. Using 50,000 direct labor hours as the denominator activity, compute the predetermined overhead rate and break it down into variable and fixed elements.

Nitin Sweets believes its advertising expenditures are too high and wants to cut $600,000 from the budget. Management estimates that this decision will result in a loss of 12,000 units in sales. If the gross margin per unit is $50, does cutting the advertising budget make sense?

Answer 2

Question

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Answer 6

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

Answer 7

Chapter 1, Problem 3DIE

(a)

To determine

Owner’s Investment: Owner’s investment refers to the amount of cash or any asset invested in the business by the owner of organization.

Owner’s Drawings: Owner’s drawings refer to the withdrawal of cash invested in the business of the personal use by the owner of business. Owner’s drawings decrease the balance of owner’s equity.

Revenues: Revenues refer to that amount which is earned by rendering services or by selling the goods to the customers after deducting the amounts of discounts and returns.

Expenses: Expenses refer to that amount of costs which is incurred by an organization in order to run the business.

To Determine: Whether Drawings is investment by owner, owner’s drawings, revenue or expense.

Answer 8

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

Answer 9

(b)

To determine

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

Answer 10

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

Answer 11

(c)

To determine

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

Answer 12

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Answer 13

(d)

To determine

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Answer 14

Expert Solution & Answer

Answer 15

Expert Solution & Answer

Answer 16

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 17

Ch. 1 - Prob. 1Q Ch. 1 - Prob. 2Q Ch. 1 - Prob. 3Q Ch. 1 - 4. What uses of financial accounting information...Ch. 1 - Prob. 5Q Ch. 1 - Prob. 6Q Ch. 1 - 7. What is the monetary unit assumption? Ch. 1 - 8. What is the economic entity assumption? Ch. 1 - Prob. 9Q Ch. 1 - Prob. 10Q

Whether Rent revenue is investment by owner, owner’s drawings, revenue or expense.

Whether advertising expense is investment by owner, owner’s drawings, revenue or expense.

Whether the Owner puts personal assets into the business is investment by owner, owner’s drawings, revenue or expense.

Want to see the full answer?

Chapter 1 Solutions