Financial and Managerial Accounting
15th Edition
ISBN: 9780357297162
Author: Carl S. Warren; Jefferson P. Jones; William B. Tayler, Ph.D., CMA
Publisher: Cengage Learning US
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Textbook Question
Chapter 1, Problem 4PB
Transactions; financial statements
2. Net income: $10,850
On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
a. Opened a business bank account with a deposit of $24,000 in exchange for common stock.
b. Paid rent on office and equipment for the month, $3,600.
c. Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.
d. Purchased supplies on account, $1,200.
e. Earned sales commissions, receiving cash, $19,800.
f. Paid creditor on account, $750.
g. Paid office salaries, $2,500.
h. Paid dividends, $3,500.
i. Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
2. Prepare an income statement for April, a statement of stockholders’ equity for April, and a
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Transactions; financial statements
On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
Opened a business bank account with a deposit of $24,000 in exchange for common stock.
Paid rent on office and equipment for the month, $3,600.
Paid automobile expenses for month, $1,350, and miscellaneous expenses, $600.
Purchased supplies on account, $1,200.
Earned sales commissions, receiving cash, $19,800.
Paid creditor on account, $750.
Paid office salaries, $2,500.
Paid dividends, $3,500.
Determined that the cost of supplies on hand was $300; therefore, the cost of supplies used was $900.
Required:
Question Content Area
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers using a minus sign.
Transactions; Financial Statements
On April 1, 20Y8, Maria Adams established Custom Realty. Maria completed the following transactions during the month of April:
Opened a business bank account with a deposit of $26,000 in exchange for common stock.
Purchased supplies on account, $2,620.
Paid creditor on account, $1,660.
Earned sales commissions, receiving cash, $26,750.
Paid rent on office and equipment for the month, $5,240.
Paid dividends, $8,000.
Paid automobile expenses for month, $2,510, and miscellaneous expenses, $1,200.
Paid office salaries, $3,160.
Determined that the cost of supplies on hand was $880; therefore, the cost of supplies used was $1,740.
Required:
Question Content Area
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank. If required, enter negative values as negative numbers using a minus sign.
2. Prepare an income statement for April.
Chapter 1 Solutions
Financial and Managerial Accounting
Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Prob. 1BECh. 1 - Accounting equation Be-The-One is a motivational...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Statement of stockholders equity Using the income...Ch. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Accounting equation The total assets and total...Ch. 1 - Prob. 5ECh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Accounting equation Inspirational Inc. is a...Ch. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items Based on the data presented...Ch. 1 - Statement of stockholders equity Financial...Ch. 1 - Income statement Imaging Services was organized on...Ch. 1 - Prob. 20ECh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty was organized...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Financial statements The assets and liabilities of...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - PR 1-2 B Financial statements The assets and...Ch. 1 - Financial statements 1. Net income: 10,900 Jose...Ch. 1 - Transactions; financial statements 2. Net income:...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1MADCh. 1 - Analyze The Home Depot for three years The Home...Ch. 1 - Analyze Lowes for three years Lowes Companies,...Ch. 1 - Compare The Home Depot and Lowes Using your...Ch. 1 - Compare Papa Johns and Yum! Brands The following...Ch. 1 - Prob. 1TIFCh. 1 - Prob. 2TIFCh. 1 - Prob. 4TIFCh. 1 - Prob. 5TIFCh. 1 - Prob. 6TIF
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