Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 1, Problem 42EB
To determine
Determine the amount that would be reported as expense on income statement, and loan payment to principal in statement of
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Question 1.
From the following transactions, classify Debit and Credit and record Journal Entries. prepare the given ledger accounting in T format. The transactions for the month of March 2020 are given hereunder.
Mar 1. Meeza started a business investing RO 12,500. Out of which she deposited RO 5,000 in the bank account the same day.
Mar 2. She purchased tools and equipment for RO 4,750. She paid 60% of the amount by cheque. Remaining amount (RO 1900) recorded in ‘Other liabilities account’ to be paid next 30 days.
Mar 6. She produced 600 units of product for RO 20,000 on credit and sold all of them on credit to Mr. John for RO 24,000.
Mar 9. Purchased Raw-Material for RO 6,200 on 15 days credit for Aesha.
Mar 11 She paid off the outstanding amount on tools and equipment account purchased on 2nd March through Bank account.
Mar 13. Mr. John paid RO 15,000 by Cheque.
Mar 16. Paid the supplier of Raw material (March 9) by cheque no 132613, RO 5,325. Reminder as a cash discount and…
27. Gis a cash basis consultant. His balance sheet at the end of the year shows receivables of $100 and
accounts payable for utilities of $30.
a) What is G's basis in the receivables?
am. 110.
Chapter 1 Solutions
Financial Accounting
Ch. 1 - 1. What is the main purpose of a business? 2....Ch. 1 - Prob. 2YTCh. 1 - 1. What are the two sources of financing for a...Ch. 1 - 1. What are revenues and expenses? 2. What are the...Ch. 1 - 1. What are the two parts of shareholders equity?...Ch. 1 - Prob. 6YTCh. 1 - Prob. 7YTCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3Q
Ch. 1 - Prob. 4QCh. 1 - What are the advantages of the corporate form of...Ch. 1 - What are the disadvantages of the corporate form...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - What are the basic financial statements? Describe...Ch. 1 - What makes the income statement different from the...Ch. 1 - Prob. 11QCh. 1 - What type of activities relate to what the firm is...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Online Pharmacy Company borrowed 5,000 cash from...Ch. 1 - Prob. 7MCQCh. 1 - During its first year of business, West Company...Ch. 1 - Interest is the cost of a. purchasing inventory....Ch. 1 - Prob. 10MCQCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Identify balance sheet items. (LO 4). Classify the...Ch. 1 - Calculate owners equity. (LO 4). Doughnut Company...Ch. 1 - Prob. 4SEACh. 1 - Prob. 5SEACh. 1 - Calculate owners equity. (LO 4). Pasta Enterprises...Ch. 1 - Super Shop had a retained earnings balance of...Ch. 1 - Prob. 8SEBCh. 1 - Prob. 9SEBCh. 1 - Breck Company shows 80,000 worth of assets on its...Ch. 1 - Prob. 11SEBCh. 1 - For each of the following, calculate the missing...Ch. 1 - Prob. 13SEBCh. 1 - M Company had a retained earnings balance of 4,200...Ch. 1 - Prob. 15EACh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 17EACh. 1 - Prob. 18EACh. 1 - Enter each transaction below into the accounting...Ch. 1 - Prob. 20EACh. 1 - For each of the transactions given, tell whether...Ch. 1 - Prob. 22EACh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 24EACh. 1 - Relationship between income statement and balance...Ch. 1 - Bob started a pool cleaning business on the first...Ch. 1 - Prob. 27EACh. 1 - Retained earnings and cash. (LO 4). Checkmate...Ch. 1 - Prob. 29EACh. 1 - Prob. 30EBCh. 1 - Prob. 31EBCh. 1 - Prob. 32EBCh. 1 - Prob. 33EBCh. 1 - Prob. 34EBCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Prob. 36EBCh. 1 - Prob. 37EBCh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 39EBCh. 1 - Prob. 40EBCh. 1 - Frank Frock started a consulting business on the...Ch. 1 - Prob. 42EBCh. 1 - Prob. 43EBCh. 1 - Prob. 44EBCh. 1 - Prob. 45PACh. 1 - Prob. 46PACh. 1 - Prob. 47PACh. 1 - Analyze business transactions and the effect on...Ch. 1 - Prob. 49PACh. 1 - Analyze business transactions and prepare the...Ch. 1 - Prob. 51PACh. 1 - Prob. 52PBCh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 54PBCh. 1 - Prob. 55PBCh. 1 - Prob. 56PBCh. 1 - Prob. 57PBCh. 1 - Prob. 58PBCh. 1 - Prob. 1FSACh. 1 - Prob. 2FSACh. 1 - Prob. 3FSACh. 1 - What is the Walt Disney Companys key objective? Go...
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- 4. Answer the questions about accounting treatment. 1. Explain what are the differences if accrual or cash accounting is used to account for the following hypothetical situation (explain the concept using the revenue recognition and illustrate with numbers each accounting treatment): Mary serviced the event and received 1/3 of the payment $2,000 in cash and client promised to pay the remaining $4,000 next month. In addition, May received $1,000 deposit for servicing birthday party next month. 2. Explain what are the differences if accrual or cash accounting is used to account for the following situation (explain the concept using the matching principle and illustrate with numbers each accounting treatment): Marie paid $70 for a phone bill she received last month, and Marie also paid $80 for current month's phone bill. 截图(Alt + A)arrow_forwardSolve both parts.arrow_forward1. Borrows $8,500 of cash from the bank by signing a formal agreement to repay the loan in 2 years. 2. Buys $6,800 of new equipment on account. 3. Pays off $4,800 of accounts payable. 4. Pays off $2,400 of notes payable. Required: a. Show the effect of these transactions on the basic accounting equation. b. Prepare the journal entries that would be used to record the transactions. Complete this question by entering your answers in the tabs below. Required A Required B Show the effect of these transactions on the basic accounting equation. (Enter any decreases to account balances with a minus sign.) Transaction Analysis Liabilities 1. Cash 2. Equipment 3. Assets Accounts Pavable 35,261 31 3,200 = Accounts Payable 6,800 - Accounts Payable II 3,200 + (6,800) + tv Stockholders' Equity Next > = CALONG X Help Sav Carrow_forward
- For each of the following activities, identify the effect on each component of the income statement and balance sheet. (Enter ell amounts as positive values. If the effect is both Increase and decrease, enter the amount. Do not enter 0.) 1. $14,000 of services were provided to clients on credit today. 2. $5,000 cash was collected for services performed on credit last month. 3. $25,000 cash was borrowed from the bank. 4. $500 of advertising was done in the local newspaper today on account. 5. $500 was pald regarding the advertising in (4) above. 6. The owner invested an additional $10,000 cash into the business. 7. The owner withdrew $5,000 of cash from the business. 8. The owner took $200 worth of office supples home for personal use. 9. A new computer was purchased for $2,000 cash. 10. A one-year Insurance policy costing $12,000 was purchased today. 11. Purchased $45 of fuel for the van; pald cash. 12. Collected $900 from a client for work performed today. es Income Statement Balance…arrow_forwardSs.arrow_forwardSelect the financial statement to which the item belongs. Items a. The change in retained earnings due to net income and dividends. b. Amount of cash received from borrowing money from a local bank. c. Revenue from sales to customers during the year. d. Total amounts owed to workers at the end of the year. Financial Statementsarrow_forward
- 1. How much is the balance of the accounts payable? 3. What is the beginning capital balance of Choy? 4. How much is the total revenue from sales?arrow_forwardWhich of the following transactions is an example of an operating cash flow? (Mark all that apply.) 1.Paying vendors for purchases you have received from them 2.Paying your monthly interest payment to the bank 3.Paying your income taxes to the government 4.Paying dividends to your shareholders 5.Paying employees for time they have worked. Need typed answer only.Please give answer within 45 minutesarrow_forwardSuppose that the company has a balance sheet as follows at the beginning of the year. In that single year, the following transactions occur. One of the customers pays his 1.400 TL amount of debt by check. The company immediately pays its 1.200 TL amount of debt by endorsing these checks. After a while, another customer pays 900 TL cash for an outstanding debt. The company deposits 800 TL of this amount to its bank. Then, the company decides to pay one half of its debts via EFT, and the other half of its debts by issuing its own checks. Lastly, the payee cashes these checks from the bank. Assuming that there are no more transactions throughout the year, what would be the total asset at the end of that year? A) 1.000 TL B) 1.400 TL C) 1.800 TL D) 2.000 TLarrow_forward
- 1. Interest paid on interest invested is called _____ interest.? 2. In the ______ , a balance is calculated at the end of each day, incorporating any purchases, credits, or payments that were made that day.? 3. If you deposit a sum of money P in a savings account or if you borrow a sum of money P from a lender, then P is referred to as the ______? 4. ____a debt means that the debt is retired in a given length of time by equal periodic payments that include compound interest.? 5. An _____ is a sequence of equal period payments. If payments are made at the end of each time interval, the annuity is called an _______? 6. The ____ of an annuity is the sum of all payments plus all interest earned? 7. The frequency that interest is computed and added to the balance is called the ____. The rate per compounding period is found by _____?.arrow_forwardIn order to produce a set of accounts for a business, the total sales and purchases must be known. A business can often provide details of cash sales and purchases. In order to find the total credit sales and credit purchases, control accounts can be used. Elizabeth Berry provided the following information: At the beginning of the financial year debtors were £5,610. During the year receipts from debtors amounted to £69,630. At the end of the year debtors owed her £7,710. We can find the total credit sales by constructing a control account.arrow_forwardYeung prepares monthly financial statements for her client, Wrecker Auto Repair. Now, though, she must summarize the data in the accounting ledgers to determine if the figures are correct and balanced. Yeung will prepare a statement of cash flows in order to complete this step of the cycle. true or falsearrow_forward
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