Loose-Leaf for Financial and Managerial Accounting
7th Edition
ISBN: 9781260004861
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Textbook Question
Chapter 1, Problem 8PSB
Problem 1-8B Analyzing effects of transactions C4 P1 P2 A1
Neva Nadal started a new business, Nadal Computing, and completed the following transactions during its first year of operations.
- Neva Nadal invested $90,000 cash and office equipment valued at $10,000 in the company in exchange for its common stock.
- The company purchased an office suite for $50,000 cash.
- The company purchased office equipment for $25,000 cash.
- The company purchased $1,200 of office supplies and $1,700 of office equipment on credit.
- The company paid a local newspaper $750 cash for printing an announcement of the office’s opening.
- The company completed a financial plan for a client and billed that client $2,800 for the service.
- The company designed a financial plan for another client and immediately collected a $4,000 cash fee.
- The company paid $11,500 cash in dividends to the owner (sole shareholder).
- The company received $1,800 cash from the client described in transaction f.
- The company made a payment of $700 cash on the equipment purchased in transaction d.
- The company paid $2,500 cash for the office secretary’s wages.
Required
- Create the following table similar to the one in Exhibit 1.9.
Assets = Liabilities + Equity |
Cash + Accounts + Office + Office + Office = Accounts + Common − Dividends + Revenues -Expenses |
Receivable Supplies Equipment Suite Payable Stock
Use additions and subtractions within the table to show the dollar effects of each transaction on individual items of the
Check (1) Ending balances: Cash, $5,350; $3,250; Accounts Payable, $2,200
(2) Net income, $3,550
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
TB 02-65 A company receives $10 million cash from inv.
A company receives $10 million cash from investors in exchange for new common stock. Several weeks later, the company buys a $25 million machinery using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are:
Multiple Choice
Contributed Capital; Cash; Equipment; and Notes Payable.
Shareholders' Equity; Cash; Long-term Investments; and Notes Payable.
Retained Earnings; Equipment; and Notes Payable.
Long-term Investments; Cash; Equipment; and Accounts Payable
TB 02-79 Your company buys a $2 million warehouse pay...
Your company buys a $2 million warehouse paying $300,000 in cash and issuing $1.7 million in promissory notes. This will be posted as:
Multiple Choice
O $2 million credited and $300,000 debited to assets; $1.7 million debited to liabilities.
$2 million debited and $300,000 credited to assets; $1.7 million credited to liabilities.
O $2 million credited to assets and $2 million debited to liabilities.
$2 million debited to assets and $2 million credited to liabilities.
Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1
[The following information applies to the questions displayed below.]
Cascade Company was started on January 1, Year 1, when it acquired $167,000 cash from the owners. During Year 1, the company earned cash revenues of $94,600 and incurred cash expenses of $66,500. The company also paid cash distributions of $13,000.
Required
Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)
Problem 8-20A (Algo) Part c
Cascade is a corporation. It issued 10,000 shares of $10 par common stock for $167,000 cash to start the business.
Chapter 1 Solutions
Loose-Leaf for Financial and Managerial Accounting
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Brunswick borrows $ 50,000 cash from Third...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Technology is increasing used to process...Ch. 1 - Prob. 3DQCh. 1 - What are at least three questions business owners...Ch. 1 - Prob. 5DQ
Ch. 1 - Describe the internal role of accounting for...Ch. 1 - 7. Identify three types of services typically...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - 10. 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 - Refer to the financial statements of Google in...Ch. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Applying the accounting equation A1 Total assets...Ch. 1 - Applying the accounting equation A1 Use the...Ch. 1 - Prob. 9QSCh. 1 - Identifying effects of transactions using...Ch. 1 - Identifying effects of transactions using...Ch. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Identifying assets, liabilities, and equity P2...Ch. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Exercise 1-2 Identifying accounting users and uses...Ch. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Exercise 1-8 Using the accounting equation A1...Ch. 1 - Exercise 1-9 Using the accounting equation...Ch. 1 - Exercise 1-10 Analysis using the accounting...Ch. 1 - Exercise 1-11 Identifying effects of transactions...Ch. 1 - Prob. 12ECh. 1 - Exercise 1-13 Identifying effects of transactions...Ch. 1 - Exercise 1-14 Analysis of return on assets A2...Ch. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Exercise 1-17 preparing a balance sheet P2 Use the...Ch. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Problem 1-1A Identifying effects of transactions...Ch. 1 - Problem 1-2A Computing missing information using...Ch. 1 - Prob. 3PSACh. 1 - Problem 1-4A preparing a statement of retained...Ch. 1 - Problem 1-5A Preparing a balances sheet P2
Use the...Ch. 1 - Problem 1-6A Preparing a statement of cash flows...Ch. 1 - Problem 1-7A Analyzing transactions and preparing...Ch. 1 - Problem 1-8.4 Analyzing effects of transactions C4...Ch. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Problem 1-2B Computing missing information using...Ch. 1 - Problem 1-9B analyzing transactions and preparing...Ch. 1 - Prob. 4PSBCh. 1 - Problem 1-5B Preparing a balance sheet P2 Use the...Ch. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Problem 1-8B Analyzing effects of transactions C4...Ch. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - Prob. 1SPCh. 1 - Key financial figures for Apple’s fiscal year...Ch. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 8BTNCh. 1 - Prob. 9BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- 30: Accounts Payable Factory Building Cash Contributed Capital Equipment Transaction $ 21,000 103,300 29,300 191,000 129,000 During the month of July, the company had the following transactions: a Issued 3,780 shares for $378,000 cash. b. Borrowed $112,000 cash from a local bank, payable in two years. c. Bought a factory building for $204,000; paid $93,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $222,000 e. Purchased supplies for $33,300 on account. a b C Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) d Land Notes Payable (long-term) Retained Earnings Supplies $ 211,000 4,200 264,500 8,100 Assets Liabilities Shareholders' Equityarrow_forwardUse the following to answer questions 16 – 20 Following are the transaction of TR Inc., which provides consulting services related to mining of precious metals. Amount of Transaction Transaction ACash provided from long-term borrowing $250,000 BCash provided from consulting customers 125,000 |CCash used for payment of office rent 5,000 PCash used for purchase of office equipment 30,000 E Cash used to pay office utilities 1,200 FCash used for payment of employee salaries 24,300 G|Cash provided from sale of equipment that had been used in operations 20,000 HCash used to pay the bank for a loan due this month 175,000 I Cash used for purchase of office supplies 100 Purchase of company vehicle paying 30% cash and borrowing the rest. 30,000 16. $ be included in cash used from investing activities? Refer to transaction J, how much should 17. $ Determine the cash flows from operating activities (include “_“ if needed) 18. $ Determine the cash flows from investing activities (include "-“ if…arrow_forwardPROBLEM 9 Juan de la Cruz began professional practice as a system analyst on July 1. He plans to prepare a monthly financial statement. During July, the owner completed these transactions (PHP = Philippine Peso, currency of Philippines): July 1. Owner invested PHp 500,000 cash along with computer equipment that had a market value of php. 120,000 two years ago but was now worth Php. 100,000 only. July 2. Paid php. 15,000 cash for the rent of office space for the month. July 4. Purchased php. 12,000 of additional equipment on credit (due within 30 days). July 8. Completed awork for a client and immediately collected the php. 32,000 cash. July 10. Completed work for a client and sent a bill for php. 27,000 to be paid within 30 days. July 12. Purchased additional equipment for php. 8,000 in cash. July 15. Paid an assistant php. 6,200 cash as wages for 15 days. July 18. Collected php. 15,000 on the amount owed by the client. July 25. Paid php. 12,000 cash to settle the liability on the…arrow_forward
- 26 Fireside, Incorporated uses accrual basis accounting. Its balance sheets reported Accounts Receivable of $12,000 at the end of its first year and $18,000 at the end of its second year. Its income statement reported Sales Revenue of $120,000 in its second year. What would Fireside's revenues have been if it had used cash basis accounting? Multiple Choice $120,000 $114,000 $126,000 $12,000arrow_forwardQuestion one Fantastic Corporation is a corporation that owns and operates a public accounting practice. The business transactions during September, 2020 while the new venture was being organized are listed below: Sept. 1 The Corporation issued 20,000 shares of capital stock to Elizabeth Carver in exchange for her investment of Birr 50,000 cash which she had saved over a period of years. Sept. 10 purchased a small office building located on a large lot for a total price of Birr 182,000, of which Birr 106,000 was applicable to the land and Birr76, 000 to the building. A cash payment of Birr 36,500 was made and a note payable was issued for the balance of the purchase price. Sept. 15 purchased a microcomputer system from Computer Stores Inc., for Birr 1,680 cash. Sept. 19 Purchased office furniture, filing cabinets and a typewriter from Davidson Office Supply Company at a cost of Birr 3,960. A cash down payment of Birr 720 was made, the balance to be paid in three equal installments due…arrow_forwardExercise 11-5 (Static) Identify information used in an investment decision Look forward to the day when you will have accumulated $5,000, and assume that you have decided to invest that hard-earned money in the common stock of a publicly owned corporation.Required: What data about that company will you be most interested in? How will you arrange those data so they are most meaningful to you? What information about the company will you want on a weekly basis, on a quarterly basis, and on an annual basis? How will you decide whether to sell, hold, or buy some more of the firm's stock?arrow_forward
- Problem 1 On 2 May 2022, Elon Musk began a new business, called Space W Inc., company producing food in pills by transforming the air and plants, with the idea of delivering low cost food to all the world citizens. The following transactions were completed by the business during May: 2 May Issued to Elon 1,000 shares of capital stock in exchange for his investment of 5,120,000€ cash. 3 May Purchased land and a building for 1,530,000€ paying 800,000 cash and signing a note payable for the balance. The interest rate for the Note payable is 3% on annual terms, and it will be paid at maturity which will be may 3rd 2024. The land was considered to be worth 630,000€ and the building the remaining amount. 4 May Purchased robots for 4,000,000€ in order to be prepared for the production, and paid cash. 5 May Sold pills for 500,000€ to be paid at the end of the month to the customer Prometeus. 31 May Collected the Accounts Receivable in full. The account…arrow_forwardCASH Transactions Debit Credit Cash receipts 1,280,000 Cash Disbursements 825,000 December 31 balances 455,000 You are contacted by the management to compute its net income using the accrual basis of accounting. During the process of preparation, the following were identified by you that will impact your computation: Property, plant and equipment are depreciated on a straight line basis. Annual depreciation is P 105,000. Prepaid insurance of P 18,000 was recognized as expense when it was paid. P 12,000 of the balance relates to year 2023. The entire amount of P 120,000 which was received as advance rental for office space in its building was recognized as rent income when received. P 70,000 of the amount will be earned in 2023. Employees are due P 28,000 at the end of 2022. Uncollected interest from investment at the end of 2022 is P 31,700. It is estimated that your 2022 fee for accounting services that have not been billed will be P 5,000. QUESTIONS: What is the…arrow_forwardProblem 6: The following are the transactions of NS Company, owned by Norina Salvador, for the month of September 2017. Sept. 1 kupor Кибката 4 сл 7 9 11 15 2/N Norina invested P550,000 cash and building and land worth 1,000,000 and 750,000 respectively. Hired an accountant with a monthly salary of P20,000 memo entry Purchased computer equipment worth 30,000 paying half and the balance on account. Jacets. Payouble Purchased supplies on credit, P450. Paid xent for the whole year P24,000. Whih year (prepaid) ((advenve Billed client for services on credit, P50,000. Paid half month salary of the accountant 18 Norina provided services and received cash amounting to P5,750. 21 Paid janitorial expense for the month amounting to P11,435 23 Norina withdrew P10,000 for personal use. 25 27 Received payment from customer previously billed P20,000 Received billing from Meralco amounting to P7,200. Paid half month salary of the accountant 30arrow_forward
- QUESTION ONE As a fresh graduate from the school of business at Mulungushi University, you have just been employed by an emerging successful entrepreneur, a Mr. Kyambalesa, as his Accountant.Kyambalesa is a retail grocer involved in buying and selling of goods. You have discovered that Kyambalesa together with one of his clerical employee had just completed preparing accounts for the year ended 31 December 2022. The accounts reveal a profit of K305,000= You have just gone through the accounts and other related documents and discovered the following: 1. Mr. Kyambalesa withdrew goods from his business for domestic use valued at K10,000 purchase cost. He makes a profit of 25% on cost. Kyambalesa recorded this withdrawal in the accounts as a sale to himself at cost (K10,000). 2. You discover that there was a further withdrawal of goods for domestic use valued at K2,000 cost, which was never recorded in the accounts and therefore did not affect the profit of K305,000 in any way. 3. Mr.…arrow_forwardQuestion 14 of 40 In one month, a company receives $250,000 in payments toward customer credit accounts and extends $180,000 in new credit for sales. What amount is recorded in the statement of cash flow? O A. $250,000 B. $320,000 C. $180,000 D. $70,000 SUBMITarrow_forwardDate Jan 1 Jan 2 Jan 3 Jan 4 Jan 5 Jan 7 Jan 9 Jan 10 Jan 11 Jan 12 Jan 15 Jan 16 Jan 23 Jan 25 Jan 26 Jan 19 Jan 21 Jan 22 Jan 27 Jan 28 Transactions Start a business with cash RM500,000 and transfer RM450,000 to the bank Brought office equipment RM5,000 Purchase 200 units of oven at price RM1599 and 100 units of refrigerator at price RM2,999 at Melur Sdn Bhd on credit. Pink Carnation bought 2 units of refrigerator at cost RM7,100 on credit Jan 29 Jan 30 Jan 31 Pay carriage outwards KM200 Purchase 300 units of iron at RM59 and 150 units of blender at RM120 on credit at Hayden Enterprise Sales of 100 units of blender to Bryan Enterprise at cost RM19, 900 on credit. Return 50 units of broken iron RM250 RM 2,950 to Hayden Enterprise. Pink Carnation paid all of the transactions on 4th January... I unit of oven and refrigerator had been taken for RM3,598. personal use Bryan Enterprise returned 10 units of blender. 8 units of oven, 25 units of blender and 67 units of Tron were sold by cash…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
The accounting cycle; Author: Alanis Business academy;https://www.youtube.com/watch?v=XTspj8CtzPk;License: Standard YouTube License, CC-BY