Horngren's Accounting, The Financial Chapters (12th Edition)
12th Edition
ISBN: 9780134486789
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem P1.55CP
P1-55 is the first problem in a continuing problem that will be used throughout the chapters to reinforce the concepts learned
P1-55 Using the
Canyon Canoe Company is a service-based company that rents canoes for use on local lakes and rivers. Amber Wilson graduated from college about 10 years ago She worked for one of the “Big Four" accounting firms and became a CPA. Because she loves the outdoors, she decided to begin a new business that will combine her love of outdoor activities with her business knowledge. Amber decides that she will create a new sole proprietorship. Canyon Canoe Company, or CCC for short The business began operations on November 1, 2018.
| Nov. 1 | Received $16,000 cash to begin the company and gave capital to Amber. |
| 2 | Signed a lease for a building and paid $1,200 for the first month's rent. |
| 3 | Purchased canoes for $4,800 on account. |
| 4 | Purchased office supplies on account, $750. |
| 7 | Earned $ 1,400 cash for rental of canoes. |
| 13 | Paid $1,500 cash for wages. |
| 15 | Wilson withdrew $50 cash from the business. |
| 16 | Received a bill for $150 for utilities. (Use separate payable account.) |
| 20 | Received a bill for $175 for cell phone expenses. (Use separate payable account.) |
| 22 | Rented canoes to Early Start Daycare on account, $3,000. |
| 26 | Paid $1,000 on account related to the November 3,2016, purchase. |
| 28 | Received $750 from Early Start Daycare for canoe rental on November 22, 2018. |
| 30 | Wilson withdrew $100 cash from the business. |
Requirements
- Analyze the effects of Canyon Canoe Company's transactions on the accounting equation. Use the format of Exhibit 1-5, and include these headings: Cash;
Accounts Receivable ; Office Supplies; Canoes; Accounts Payable; Utilities Payable; Telephone Payable; Wilson, Capital; Wilson, Withdrawals; Canoe Rental Revenue; Rent Expense; Utilities Expense; Wages Expense; and Telephone Expense. - Prepare the income statement of Canyon Canoe Company for the month ended November 30, 2018.
- Prepare the statement of owner s equity for the month ended November 30, 2018
- Prepare the
balance sheet as of November 30, 2018. - Calculate the return on assets for Canyon Canoe Company for November 2018.
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Chapter 1 Solutions
Horngren's Accounting, The Financial Chapters (12th Edition)
Ch. 1 - Prob. 1QCCh. 1 - Which of the following is not an external user of...Ch. 1 - Prob. 3QCCh. 1 - Prob. 4QCCh. 1 - Prob. 5QCCh. 1 - Which of the following requires accounting...Ch. 1 - At the end of a recent year, Global Cleaning...Ch. 1 - Consider the overall effects on Global Cleaning...Ch. 1 - Assume that Global Cleaning Service performed...Ch. 1 - The balance sheet reports the Learning Objective 5...
Ch. 1 - Assume Global Cleaning Service had net income of...Ch. 1 - What is accounting?Ch. 1 - Prob. 2RQCh. 1 - Prob. 3RQCh. 1 - Prob. 4RQCh. 1 - Prob. 5RQCh. 1 - Prob. 6RQCh. 1 - Prob. 7RQCh. 1 - A business purchases an acre of land for $5,000....Ch. 1 - What does the going concern assumption mean for a...Ch. 1 - Which concept states that accounting information...Ch. 1 - Financial statements in the United States are...Ch. 1 - Prob. 12RQCh. 1 - What is the accounting equation? Briefly explain...Ch. 1 - What are two ways that equity increases? What are...Ch. 1 - How is net income calculated? Define revenues and...Ch. 1 - What are the steps used when analyzing a business...Ch. 1 - List the four financial statements. Briefly...Ch. 1 - What is the calculation for ROA? Explain what ROA...Ch. 1 - Prob. S1.1SECh. 1 - Determining organizations that govern accounting...Ch. 1 - Identifying types of business organizations...Ch. 1 - Prob. S1.4SECh. 1 - Applying accounting assumptions and principles...Ch. 1 - Prob. S1.6SECh. 1 - Using the accounting equation Learning Objective 3...Ch. 1 - Identifying accounts Learning Objective 3 Consider...Ch. 1 - Prob. S1.9SECh. 1 - Using the accounting equation to analyze...Ch. 1 - Identifying accounts on the financial statements...Ch. 1 - Preparing the income statement Learning Objective...Ch. 1 - Preparing the statement of owner’s equity Learning...Ch. 1 - Prob. S1.14SECh. 1 - Preparing the statement of cash flows Learning...Ch. 1 - Calculating ROA Learning Objective 6 Matured Water...Ch. 1 - Prob. E1.17ECh. 1 - Prob. E1.18ECh. 1 - 1. Accounting equation a. An economic resource...Ch. 1 - Using the accounting equation Learning Objective 3...Ch. 1 - E1-21 Using the accounting equation Learning...Ch. 1 - Using the accounting equation Learning Objective 3...Ch. 1 - Using the accounting equation Learning Objective 3...Ch. 1 - E1-24 Using the accounting equation Learning...Ch. 1 - Using the accounting equation to analyze...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Using the accounting equation to analyze business...Ch. 1 - Preparing the financial statements Learning...Ch. 1 - Preparing the income statement Learning Objective...Ch. 1 - Prob. E1.32ECh. 1 - Prob. E1.33ECh. 1 - Prob. E1.34ECh. 1 - Preparing the statement of owner’s equity Learning...Ch. 1 - Prob. E1.36ECh. 1 - Prob. E1.37ECh. 1 - Jan. 1 The owner contributed an additional $5,000...Ch. 1 - Calculating Return on Assets Learning Objective 6...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. P1.41APGACh. 1 - P1-42A Preparing financial statements Learning...Ch. 1 - Preparing financial statements Learning Objective...Ch. 1 - Prob. P1.44APGACh. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Preparing financial statements Presented here are...Ch. 1 - Prob. P1.50BPGBCh. 1 - Prob. P1.51BPGBCh. 1 - Using the accounting equation for transaction...Ch. 1 - Using the accounting equation for transaction...Ch. 1 - Prob. P1.54CTCh. 1 - P1-55 is the first problem in a continuing problem...Ch. 1 - Prob. 1.1TIATCCh. 1 - Decision Case 1-1 Let’s examine a case using...Ch. 1 - The tobacco companies have paid billions because...Ch. 1 - Prob. 1.1FCCh. 1 - Prob. 1.1FSC
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