CHAPTER 10 AND CHAPTER 11 - ANSWER FORMAT(cm) (1).docx - Problem 10-23 Event No 1 2 3 4 5a 5b 6a Assets = Equity Manuf Office Common 8 Cash Invent Equip

CHAPTER 10 AND CHAPTER 11 - ANSWER FORMAT(cm) (1).docx -...

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Problem 10-23EventAssets=EquityIncome StatementManuf.OfficeCommon 8CashFlowNo.Cash+Invent.+Equip.*+Furn.*=Stock+Ret. Ear.Rev.Exp.=Net Inc.1.68,000+++=68,000+=68,000FA2.-8,700+8,700++=+=OA3.-4,500+++=+-4,5004,500=-4,500OA4.-10,000+10,000++=+=OA5a.-9,600+++9,600=+=IA5b.+++-2,000=+-2,0002,000=-2,000N/A6a.-16,000++16,000+=+=IA6b.++-3,000+=+-3,0003,000=-3,000N/A7a.35,000+++=+35,00035,000= 35,000OA7b.+-14,000++=+-14,00014,000= -14,000N/ATotal$ 54,200 +$ 4,700 +$7,600 +$13,000 =$68,000+$11,500 $35,000 $23,500 = $11,500 $ *Record accumulated depreciation as negative amounts under these columns.10-1
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Problem 10-26a.Wang CompanyIncome Statement for 2018Balance Sheet as of 12/31/2018Sales revenue$88,000AssetsOperating expenses1(65,000 )Cash2$93,000Net income (Loss)$ 23,000Total assets$ $93,000EquityCommon stock$70,000Retained earnings$23,000Total equity$93,0001$65,000 expenditure is a period cost that is an expense2Cash balance will be the same for all three. b.Wang CompanyIncome Statement for 2018Balance Sheet as of 12/31/2018Sales revenue$ 88,000 AssetsDepreciation exp.1(13,000 )Cash$93,000Net income$ 75,000Rental equipment65,000Accumulated dep.1(13,000)Total assets$145,000EquityCommon Stock$70,000Retained earnings75,000Total equity$145,0001$65,000 was used to purchase autos that had a five year useful life, and nosalvage value.
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