Bundle: College Accounting, Chapters 1-27, Loose-Leaf Version, 22nd + CengageNOWv2, 2 terms Printed Access Card
22nd Edition
ISBN: 9781305930421
Author: James A. Heintz, Robert W. Parry
Publisher: Cengage Learning
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Chapter 24, Problem 6SEA
To determine
Compute Return on equity during the period 20-2 using its three components.
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Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "i" and the
dollar amount in the column or columns. For decreases, place a"- and the dollar amount in the column or columns. Some cells may
contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example.
Required:
a. For the balance sheet, identify how each transaction affects total essets, total abilities, and total equity For the income statement,
identify how each transaction affects net income.
b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from investing
activities, and cash flows from Snancing activities.
Transaction
1. Owner invest $300 cash in business in exchange for vock
2 Rives $700 cash for services provided
3 Pays $500 cash for employee wages
& Buys $100 of equipment on cred
5 Purchases $200 af supplies on credit
&…
Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "+" and the
dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may
contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example.
Required:
a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income
statement, identify how each transaction affects net income.
b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from
investing activities, and cash flows from financing activities.
Transaction
1. Owner invests $750 cash in business in exchange for stock
2. Receives $550 cash for services provided
3. Pays $350 cash for employee wages
4. Buys $480 of equipment on credit
5. Purchases $580 of supplies…
for each of the financial statement items, identify the estimate(s) from the following (1-11) list that are
required in the measurement of that item on the financial statements. For each select 3 of them.
Account Receivable
A.
b,
C,
• Inventory
A.
b,
C,
Equipment
A.
b,
C,
Warranty Liability
A.
b,
C,
Sales revenue
А,
b,
C,
Revenue from long term contract
b,
A.
Cost of good sold.
C,
A.
C,
1. Cost to repair or replace product.
2. Cost of each item sold/held.
3. Customer default rate
4. Degree of progress fulfilling contract.
5. Pattern of benefit obtained.
6. Prices of inventory items
7. Profitability of contract
8. Rate of defect
9. Residual value at end of useful life
10. Speed of collection
11. Useful lives
Chapter 24 Solutions
Bundle: College Accounting, Chapters 1-27, Loose-Leaf Version, 22nd + CengageNOWv2, 2 terms Printed Access Card
Ch. 24 - A comparison of amounts for the same item in the...Ch. 24 - Prob. 2TFCh. 24 - Prob. 3TFCh. 24 - Prob. 4TFCh. 24 - Prob. 5TFCh. 24 - Prob. 1MCCh. 24 - Prob. 2MCCh. 24 - Working capital is a measure of (a) liquidity. (b)...Ch. 24 - Prob. 4MCCh. 24 - Prob. 5MC
Ch. 24 - Prob. 1CECh. 24 - Prob. 2CECh. 24 - Compute the following profitability measures for...Ch. 24 - Prob. 4CECh. 24 - Prob. 5CECh. 24 - Prob. 6CECh. 24 - Prob. 1RQCh. 24 - Prob. 2RQCh. 24 - Prob. 3RQCh. 24 - Prob. 4RQCh. 24 - Prob. 5RQCh. 24 - Prob. 6RQCh. 24 - Prob. 7RQCh. 24 - Prob. 8RQCh. 24 - Prob. 9RQCh. 24 - Prob. 10RQCh. 24 - Prob. 11RQCh. 24 - Prob. 12RQCh. 24 - Prob. 13RQCh. 24 - Prob. 1SEACh. 24 - Prob. 2SEACh. 24 - ANALY SIS OF PROFITABILITY Based on the financial...Ch. 24 - ANALY SIS OF LEVERAGE Based on the financial...Ch. 24 - Prob. 5SEACh. 24 - Prob. 6SEACh. 24 - Prob. 7SEACh. 24 - Prob. 8SPACh. 24 - Prob. 9SPACh. 24 - RATIO ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS...Ch. 24 - Prob. 1SEBCh. 24 - ANALYSIS OF ACTIVITY MEASURES Based on the...Ch. 24 - Prob. 3SEBCh. 24 - Prob. 4SEBCh. 24 - Prob. 5SEBCh. 24 - Prob. 6SEBCh. 24 - Prob. 7SEBCh. 24 - Prob. 8SPBCh. 24 - Prob. 9SPBCh. 24 - RATIO ANALYSIS OF COMPARATIVE FINANCIAL STATEMENTS...Ch. 24 - Prob. 1MPCh. 24 - This problem challenges you to apply your...
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- Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total cq- A1 P1 uity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating ac- tivities, cash flows from investing activities, and cash flows from financing activities. 2 3 4 5 6 7 8 9 10 Transaction Owner invests $800 cash in business in exchange for stock Purchases $100 of supplies on credit Buys equipment for $400 cash Provides services for $900 cash Pays $400 cash for rent…arrow_forwardSelect 30 transactions of various kinds such as sales, costs (direct and indirect),revenues earned, revenue received in advance, expenses incurred, paid in advance, outstanding expenses, assets (current, non-current), liabilities (current, long term), Equity and so on.1. Record those transactions in journal2. post them to ledgerarrow_forwardSelect 30 transactions of various kinds such as sales, costs (direct and indirect), revenues earned, revenue received in advance, expenses incurred, paid in advance, outstanding expenses, assets (current, non-current), liabilities (current, long term), Equity and so on.1. Record those transactions in journal,2. post them to ledger,3. Transfer the balances in trail balance,4. Prepare income statement and balance sheet.5. Follow the proper format considering IAS-1.6. Explanation: At the end, apply the concepts such as long term assets, capital or revenueincomes or expenses and their treatment involved in your above requirements Transactions of Mr. Akram travel world business Mr Akram started business with cash for rs 400,000. Paid wages rs 20,000. Paid office rent in advance 2000. Paid rs 10000 for insurance in advance. Babar and sons paid 2500 for goods on advance. Purchased office equipment on credit rs 5000. Paid 7000 for advertising expenses. Paid 3000 to accounts payable. Provided…arrow_forward
- Balance Sheet Prepare a vertical analysis of the balance sheets for Year 4 and Year 3. Note: Percentages may not add exactly due to rounding. Round your answers to 2 decimal places. (L.e., .2345 should be entered as 23.45). Assats Current assets Cash Income Statement Marketable securities Accounts receivable (net) Inventories Prepaid Items Total current assets Investments Plant (net) Land Total long-term assets Total assets Liabilities and stockholders' equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other FANNING COMPANY Vertical Analysis of Balance Sheeta Year 4 Total noncurrent liabilales Total abilities Stockholders' equity Preferred stock (par value $10, 4% cumulative, nonparticipating: 6,600 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity…arrow_forwardBalance Sheet Prepare a horizontal analysis of the balance sheet for Year 4 and Year 3. Note: Negative answers should be indicated by a minus sign. Round your answers to 1 decimal place. (1.e., .234 should be entered as 23.4). Assets Current assets Cash Income Statement Marketable securities Accounts receivable (net) Inventories Prepaid Items Total current assets Investments Plant (net) Total long-term assets Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Terlam Notes payable Accounts payable Salaries payable Total current liabilites Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total abilities Stockholders' equity FRANKLIN COMPANY Horizontal Analysis of Balance Sheets Preferred stock (par value $10, 4% cumulative, nonparticipating: 6,300 shares authorized and issued) EMAIA Common stock (no par; 50,000 shares authorized, 10,000 shares issued) Retained earnings Total stockholders' equity Total habilities & stockholders equity…arrow_forwardDefine each of the following terms:a. Annual report; balance sheet; income statementarrow_forward
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- The following items are reported on a companys balance sheet: Determine (a) the current ratio and (b) the quick ratio. Round to one decimal place.arrow_forwardIncome statement items Based on the data presented in Exercise 1-16, identify those items that would appear on the income statement.arrow_forwardIdentify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a “+” and the dollar amount in the column or columns. For decreases, place a “−” and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (−) along with dollar amounts. The first transaction is completed as an example.arrow_forward
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