Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 6E
Exercise 1-6 Effect of transactions on general ledger accounts
At the beginning of 2018, Better Corp.’s accounting records had the following general ledger accounts and balances:
Better Corp. completed the following transactions during 2018:
1. Purchased land for $5,000 cash.
2. Acquired $25,000 cash from the issue of common stock.
3. Received $75,000 cash for providing services to customers.
4. Paid cash operating expenses of $42,000.
5. Borrowed $10,000 cash from the bank.
6. Paid a $5,000 cash dividend to the stockholders.
7. Determined that the market value of the land purchased in event 1 is $35,000.
Required
a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the
b. As of December 31, 2018, determine the total amount of assets, liabilities, and stockholders’ equity and present this information in the form of an
c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, 2019?
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Balance Sheet
As of 12/31/19
Assets:
Liabilities and Equity:
Cash and marketable securities
$28,987
Accounts payable and accruals
$154,807
Accounts receivable
$142,845
Short-term notes payable
$21,639
Inventory
$212,722
Total current liabilities
$176,446
Total current assets
$384,554
Long term debt
$155,510
Net plant and equipment
$602,309
Total liabilities
$331,956
Goodwill and cther assets
$42,422
Common stock
$314,932
Retained earnings
$382,397
Total assets
$1,029,285
Total liabilities and equity
$1,029,285
In addition, it was reported that the firm had a net income of:
$158,531
and net sales of:
$4,338,283
Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g. 52.75.):
Current Ratio
times
Quick Ratio
times
Average Collection Period
days
Total Asset Turnever
times
Fixed Asset Turnover
times
Question
Topic: Cash and Cash Equivalents / Intermediate Accounting 1
Financial information of ABC Company for the year ended December 31, 2021.
Description
Debit
Credit
Cash on hand
40,000.00
Cash in bank
900,000.00
Petty cash fund
10,000.00
BSP Treasury bill, purchased on December 1, 2021 and due March 1, 2022
150,000.00
Financial assets at fair value
200,000.00
Financial assets at amortized cost
3,000,000.00
Investment in associate at equity method
1,000,000.00
Accounts receivable
580,000.00
Trade Notes receivable
100,000.00
Accrued interest on notes receivable
10,000.00
Advances to employees, collectible currently
30,000.00
Merchandise Inventory
1,500,000.00
Store supplies
50,000.00
Office supplies unused
30,000.00
Prepaid insurance
20,000.00
Land
1,500,000.00
Building
4,500,000.00
Equipment
1,000,000.00…
Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
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