Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (12th Edition)
12th Edition
ISBN: 9780134642932
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
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.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
I need the answer as soon as possible
Help me answer this please. Auditing subject.
Hi Team!
Greetings again to you all.
For this week we will be focusing on the theme The Financial Accounting Cycle (Part 1). I have already uploaded the week 2 mini lecture notes to the course page under the heading Course Materials. I implore you to use this additional material alongside the other materials provided in building your knowledge base on this area.
Please see our week 2 discussion question as follows:
Question:
During February 2015, Claude Sample who operates a sports clinic presented the following for the first month of his company’s operation:
Feb 1. Sample invested $55,000 in the business by depositing it into the company’s bank account.
Feb 2. Paid $46,000 cash for land.
Feb 3. Purchased medical supplies for $1,800 on account.
Feb 4. Officially opened for business.
Feb 5. During the month, Sample treated patients and earned service revenue of $8,000, receiving cash.
Feb 6. Paid cash expenses:…
Chapter 1 Solutions
Horngren's Accounting, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (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
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
- Why Does It Matter? ECOTOUR EXPEDITIONS, INC., Jamestown, Rhode Island You probably have never imagined the possibility of being an accountant who could have a direct impact on improving global ecosystems. Accountants who work for Ecotour Expeditions, Inc., an ecotourism company, might manage accounting details for guest air travel and accommodations, tour guide compensation, expedition revenue, and a variety of expenses. What type of accounting transactions would Ecotour Expeditions have? List 3 to 4 transactions and then record the journal entry for each transaction. Example: Purchase safari jeep with cash, 42,500. Safari Jeep42,500 Cash42,500arrow_forwardDirections: 1. Read and analyze the given scenario. 2. With the goal and role of financial management in business in mind, determine whether the project should be continued or abandoned. Use the following facts and figures below as your reference. 3. Present your recommendation and explain the reasons in 4-6 sentences. 4. Write your answer on the blanks provided. Company A accepts a project to create a Learning Management System (LMS) for a big client. This company also creates and produces online training materials such as digital videos and ebooks. The LMS project itself has a projected revenue of $850,000. So far, the expenses amounting to $600,000 have been incurred by Company A on the project. This is way beyond the allocated budget. Due to this, the management contemplates on whether the project should still be continued. 1. Customized Software/Program Already purchased for $80,000 (apart from the $600,000 mentioned above), this software cannot be used for any other products of…arrow_forwarda) You have been recruited by Education-For-ALL (EFA), an NGO providing teaching and learning support for Students of Second Cycle Schools in Ghost Town, as a Cost Accounting Tutor. During a lesson on the topic “Nature and Scope of Cost Accounting”, a student raised his hand and asked you about what difference there is, if any, between cost accounting and financial accounting. Based on the scope, timing, users of accounting information, reports and standards, explain, with examples, the difference between cost accounting and financial accounting. Define the term Cost, and explain how cost of a product is ascertained when: i. a product is self-constructed or manufactured in-house. ii. a product is a finished product that has been imported. iii. a product is a finished product that has been purchased. Cost accounting as a sub accounting system provides cost information for financial accounting and managerial accounting. List two (2) each of the information cost accounting provides…arrow_forward
- Throughout this course, many to respond to other people's opinions and comments. Address the Discussion topic after you have completed your reading. Creating an Accounting Information System You are the CEO of a newly incorporated retail firm that will sell DKNY® and Tommy Hilfiger® along with other designer clothing. Your job is to set up an accounting information system to maintain appropriate records needed in the eventual preparation of financial statements. Certain principles should be followed in the development of an accounting information system. Identify and explain each of the principles. 6 Return to Unit 7 Discussion Instructions Rubrics F6 Y 15pt SBIT_integrated_discussion_rubric F7 7 O Search + FB *8 O U 1 F9 8 ( 9 F10 O ) 0 F11 P F12 Insert { +11 Jarrow_forwardOutdoor Leadership School is a newly organized business that teaches people how to inspire and influence others. The list of accounts to be opened in the general ledger is as follows:Accounts Payable Miscellaneous ExpenseAccounts Receivable Prepaid InsuranceCash Rent ExpenseEquipment SuppliesFees Earned Supplies ExpenseLorri Ross, Capital Unearned RentLorri Ross, Drawing Wages ExpenseList the accounts in the order in which they should appear in the ledger of Outdoor Leadership School and assign account numbers. Each account number is to have two digits: the first digit is to indicate the major classification (1 for assets, for example), and the second digit is to identify the specific account within each major classification (11 for Cash, for example).arrow_forwardPlease answer the question in 500 words of reflection. Thank you.arrow_forward
- My text book is Hospitality Industry Financial Accounting (4th edition). I am in chapter 9 -- RECEIVABLES AND PAYABLES now. Problem 17 asks me to two tasks. The scenario will be show inthe image.arrow_forwardNeed help with Part 1 and 2 please.arrow_forwardNicole’s Getaway Spa (NGS) continues to grow and develop. Nicole is now evaluating a computerized accounting system and needs your help in understanding how source documents informaccounting processes. She also needs some help reconciling NGS’s bank account.Required:1. For each source document shown below, prepare the appropriate journal entry or indicate thatno journal entry is required.a. Purchase order dated October 13 for massage chairs costing $765 and oil suppliescosting $240.arrow_forward
- This problem is designed to enable you to apply the knowledge you have acquired in the preceding chapters. In accounting, the ultimate test is being able to handle data in real life situations. This problem will give you valuable experience. CHART OF ACCOUNTS You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle. When you are analyzing the transactions, think them through by visualizing the T accounts or by writing them down on scratch paper. For unfamiliar types of transactions, specific instructions for recording them are included. However, reason them out for yourself as well. Check off each transaction as it is recorded. Required 1. Journalize the transactions. (Start on page 1 of the general journal if using Excel or Working Papers.) 2. Post the transactions to the ledger accounts. (Skip this step if using CLGL.) 3. Prepare a trial balance. (If using a work sheet, use the first two columns.) 4. Data for the adjustments are as follows: a. Insurance expired during the month, 1,000. b. Depreciation of pool structure for the month, 715. c. Depreciation of fan system for the month, 260. d. Depreciation of sailboats for the month, 900. e. Wages accrued at June 30, 810. Your instructor may want you to use a work sheet for these adjustments. 5. Journalize adjusting entries. 6. Post adjusting entries to the ledger accounts. (Skip this step if using CLGL.) 7. Prepare an adjusted trial balance 8. Prepare the income statement 9. Prepare the statement of owners equity. 10. Prepare the balance sheet. 11. Journalize closing entries. 12. Post closing entries to the ledger accounts. (Skip this step if using CLGL.) 13. Prepare a post-dosing trial balance. Check Figure Trial balance total, 281,858; net income, 7,143; post-dosing trial balance total, 263,341arrow_forwardThis problem is designed to enable you to apply the knowledge you have acquired in the preceding chapters. In accounting, the ultimate test is being able to handle data in real-life situations. This problem will give you valuable experience. CHART OF ACCOUNTS You are to record transactions in a two-column general journal. Assume that the fiscal period is one month. You will then be able to complete all of the steps in the accounting cycle. When you are analyzing the transactions, think them through by visualizing the T accounts or by writing them down on scratch paper. For unfamiliar types of transactions, specific instructions for recording them are included. However, reason them out for yourself as well. Check off each transaction as it is recorded. Required 1. Journalize the transactions. (Start on page 1 of the general journal if using Excel or Working Papers.) 2. Post the transactions to the ledger accounts. (Skip this step if using CLGL.) 3. Prepare a trial balance. (If using a work sheet, use the first two columns.) 4. Data for the adjustments are as follows: a. Insurance expired during the month, 1,020. b. Depreciation of building for the month, 480. c. Depreciation of pool/slide facility for the month, 675. d. Depreciation of pool furniture for the month, 220. e. Wages accrued at July 31, 920. Your instructor may want you to use a work sheet for these adjustments. 5. Journalize adjusting entries. 6. Post adjusting entries to the ledger accounts. (Skip this step if using CLGL.) 7. Prepare an adjusted trial balance. 8. Prepare the income statement. 9. Prepare the statement of owners equity. 10. Prepare the balance sheet. 11. Journalize closing entries. 12. Post closing entries to the ledger accounts. (Skip this step if using CLGL.) 13. Prepare a post-closing trial balance. Check Figure Trial balance total, 601,941; net income, 16,293; post-closing trial balance total, 569,614arrow_forwardFor this writing assignment please state your major. Then, based on your major, pleasewrite a memo to your boss, explaining how the video Planet Popcorn and the accounting course helped you understand the need for accounting in order to properlyrun the business related to your major.In the body of your writing it would be useful for you to:1. Identify the potential business problems and2. Suggest appropriate solutions to the problems.A total of one to two pages should be sufficient Memo formatarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
College Accounting (Book Only): A Career Approach
Accounting
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
ACCOUNTING BASICS: Debits and Credits Explained; Author: Accounting Stuff;https://www.youtube.com/watch?v=VhwZ9t2b3Zk;License: Standard Youtube License