Financial Accounting, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134114811
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 8SC
Consider the overall effects of the transactions in questions 5, 6, and 7 on Wave Rider. What is Wave Rider's net income or net loss?
- a. Net loss of $4,000
- b. Net income of $46,000
- c. Net income of $14,000
- d. It cannot be determined from the data given.
5. Assume that Wave Rider sold skateboards to a department store for $28,000 cash. How would this transaction affect Wave Rider's
- a. Increase both assets and
stockholders' equity by $28,000 - b. Will not affect the accounting equation because the effects cancel out
- c. Increase both assets and liabilities by $28,000
- d. Increase both liabilities and stockholders' equity by $28,000
6. Assume that Wave Rider sold skateboards to another department store for $18,000 on account. Which parts of the accounting equation does a sale on account affect?
- a. Accounts Payable and Cash
- b.
Accounts Receivable andRetained Earnings - c. Accounts Receivable and Accounts Payable
- d. Accounts Payable and Retained Earnings
7. Assume that Wave Rider paid expenses totaling $32,000. How does this transaction affect Wave Rider's accounting equation?
- a. Increases assets and decreases liabilities
- b. Decreases both assets and stockholders' equity
- c. Increases both assets and stockholders' equity
- d. Decreases assets and increases liabilities
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PREPARE A PERSONAL SFP:
a. Get a one piece of yellow paper
b. Write your current savings and everything that you own ( clothes, pen, pencil, etc.)
c. Write the ammount that you owe to your friends, family members, parents (tuition)
d. Deduct the amount you owe from the amount you own
e. Associate amounts owned with assets and amount owed with liabilities with the net amount as equity.
explain how you apply accounting in your personal life in reference to the following:
1. Give 3 examples of what you would consider to be assets.
2. Give 2 examples of what you would consider to be liabilities.
3. Assign values (they don't need to be actual values) to each of the above and show how you would determine your net worth.
4. What statement would you report all of the above accounts and amounts on?
5. Explain what would cause your net worth to change over the next month?
Solve both parts.
Chapter 1 Solutions
Financial Accounting, Student Value Edition (4th Edition)
Ch. 1 - The text states that accounting is the "language...Ch. 1 - Would you describe accounting as primarily a...Ch. 1 - Prob. 3DQCh. 1 - What are some reasons why accounting has adopted...Ch. 1 - What are some of the uses of financial statements?Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - How is the accounting equation affected by each of...Ch. 1 - In what order should the financial statements be...Ch. 1 - Which financial statement would be most useful to...
Ch. 1 - Prob. 1SCCh. 1 - Prob. 2SCCh. 1 - Which accounting principle specifically states...Ch. 1 - Wave Rider is famous for custom skateboards. At...Ch. 1 - Assume that Wave Rider sold skateboards to a...Ch. 1 - Assume that Wave Rider sold skateboards to another...Ch. 1 - Assume that Wave Rider paid expenses totaling...Ch. 1 - Consider the overall effects of the transactions...Ch. 1 - Prob. 9SCCh. 1 - Prob. 10SCCh. 1 - Prob. 11SCCh. 1 - Prob. 12SCCh. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Prob. 3SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 5SECh. 1 - Prob. 6SECh. 1 - Prob. 7SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Prob. 12SECh. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Prob. 14SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 16AECh. 1 - Prob. 17AECh. 1 - Prob. 18AECh. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Prob. 20AECh. 1 - Prob. 21AECh. 1 - Prob. 22AECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 24BECh. 1 - Prob. 25BECh. 1 - Prob. 26BECh. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Prob. 28BECh. 1 - Prob. 29BECh. 1 - Prob. 30BECh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 32APCh. 1 - Prob. 33APCh. 1 - Prob. 34APCh. 1 - Prob. 35APCh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 37BPCh. 1 - Prob. 38BPCh. 1 - Prob. 39BPCh. 1 - Prob. 40BPCh. 1 - Prob. 1CECh. 1 - Prob. 1CPCh. 1 - Prob. 1CFSAPCh. 1 - Prob. 1EIACh. 1 - Prob. 2EIACh. 1 - Prob. 1FACh. 1 - Prob. 1IACh. 1 - Prob. 1SBACh. 1 - Prob. 1WC
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