B_Series_SolutionsChap11

B_Series_SolutionsChap11 - SOLUTIONS TO EXERCISES SERIES B...

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SOLUTIONS TO EXERCISES - SERIES B - CHAPTER 11 EXERCISE 11-1B Transactions Cash Acquired from Owner $20,000 Revenues 14,500 Expenses 9,300 Withdrawal 500 Dan Jones Sole Proprietorship Financial Statements For the Year Ended December 31, 2009 Income Statement Revenues $14,500 Expenses (9,300) Net Income $  5,200 Capital Statement Beginning Capital Balance $       -0- Plus: Capital Acquired from Owner 20,000 Plus: Net Income 5,200 Less: Withdrawal by Owner (500) Ending Capital Balance $24,700 11-53
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11-54
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EXERCISE 11-1B (cont.) Dan Jones Sole Proprietorship Financial Statements Balance Sheet As of December 31, 2009 Assets Cash $24,700 Total Assets $24,700 Liabilities $        -0- Equity Jones, Capital 24,700 Total Liabilities and Equity $24,700 Statement of Cash Flows For the Year Ended December 31, 2009 Cash Flows From Operating Activities: Inflow from Revenues $14,500 Outflow for Expenses (9,300) Net Cash Flow from Operating Activities $  5,200 Cash Flows From Investing Activities  -0- Cash Flows From Financing Activities: Inflow from Owner 20,000 Outflow for Owner Withdrawals (500) 11-55
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Net Cash Flow from Financing Activities 19,500 Net Change in Cash 24,700 Plus: Beginning Cash Balance -0- Ending Cash Balance $24,700 11-56
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EXERCISE 11-2B Transactions: Cash Contributions C. Mills $24,500 35% P. Price 45,500 65% Total $70,000 100% Revenues $15,000 Expenses 6,300 Mills Withdrawal 600 Price Withdrawal 1,400 M&P Partnership Financial Statements For the Year Ended December 31, 2009 Income Statement Revenues $15,000 Expenses (6,300) Net Income $  8,700 Capital Statement Beginning Capital Balance $        -0- Plus: Capital Acquired from Owners 70,000 Plus: Net Income 8,700 Less: Withdrawals by Owners (2,000) 11-57
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Ending Capital Balance $76,700 11-58
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EXERCISE 11-2B (cont.) Prepared for the instructor’s use: Analysis of Capital  Accounts: Mills Price Total Beginning Capital Balance $       -0- $       -0- $       -0- Investments 24,500 45,500 70,000 Net Income 8,700 C. Mills 35% 3,045 P. Price 65% 5,655 Withdrawals (600) (1,400) (2,000) Ending Capital Balances $26,945 $49,755 $76,700 11-59
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EXERCISE 11-2B (cont.) M&P Partnership Financial Statements Balance Sheet As of December 31, 2009 Assets Cash $76,700 Total Assets $76,700 Liabilities $        -0- Equity C. Mills, Capital $26,945 P. Price, Capital 49,755 Total Equity 76,700 Total Liabilities and Equity $76,700 Statement of Cash Flows For the Year Ended December 31, 2009 Cash Flows From Operating Activities: Inflow from Revenues $15,000 Outflow for Expenses (6,300) Net Cash Flow from Operating Activities $  8,700 Cash Flows From Investing Activities  -0- Cash Flows From Financing Activities: 11-60
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Inflow from Partners 70,000 Outflow for Partners’ Withdrawals (2,000) Net Cash Flow from Financing Activities 68,000 Net Change in Cash 76,700 Plus: Beginning Cash Balance -0- Ending Cash Balance $76,700 11-61
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EXERCISE 11-3B Transactions: Issued 1,000 shares of $5 par stock @ $18 $18,000 Revenues 23,000 Expenses 17,000 Dividends Paid 1,200 Stone Corporation Financial Statements For the Year Ended December 31, 2009 Income Statement Revenues $23,000 Expenses (17,000)
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