# Chapter1HWanswers - PRACTICE EXERCISES PE 11A \$37,000 Under...

This preview shows pages 1–6. Sign up to view the full content.

PRACTICE EXERCISES PE 1–1A \$37,000. Under the cost concept, the land should be recorded at the cost to Johnson Repair Service. PE 1–1B \$100,000. Under the cost concept, the land should be recorded at the cost to Duck Repair Service. PE 1–2A a. A = L + OE b. A = L + OE \$617,000 = \$382,000 + OE +\$114,000 = –\$29,000 + OE OE = \$235,000 OE = +\$143,000 OE on December 31, 2008 = \$378,000 = \$235,000 + \$143,000 PE 1–2B a. A = L + OE b. A = L + OE \$336,000 = \$172,500 + OE +\$75,000 = \$15,000 + OE OE = \$163,500 OE = +\$60,000 OE on December 31, 2008 = \$223,500 = \$163,500 + \$60,000 PE 1–3A (2) Asset (Cash) decreases by \$815; Liability (Accounts Payable) decreases by \$815. (3) Asset (Accounts Receivable) increases by \$3,250; Revenue (Delivery Service Fees) increases by \$3,250.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
(4) Asset (Cash) increases by \$1,150; Asset (Accounts Receivable) decreases by \$1,150. (5) Asset (Cash) decreases by \$500; Drawing (Pamela Kolp, Drawing) increases by \$500.
PE 1–3B (2) Expense (Advertising Expense) increases by \$674; Asset (Cash) decreases by \$674. (3) Asset (Supplies) increases by \$280; Liability (Accounts Payable) increases by \$280. (4) Asset (Accounts Receivable) increases by \$4,800; Revenue (Delivery Service Fees) increases by \$4,800. (5) Asset (Cash) increases by \$1,150; Asset (Accounts Receivable) decreases by \$1,150. PE 1–4A HERAT TRAVEL SERVICE Income Statement For the Year Ended June 30, 2008 Fees earned ....................................................................... \$378,200 Expenses: Wages expense ........................................................... \$181,500 Office expense ............................................................. 91,350 Miscellaneous expense .............................................. 3,150 Total expenses ........................................................ 276,000 Net income ......................................................................... \$ 102,200 PE 1–4B LEOTARD TRAVEL SERVICE Income Statement For the Year Ended February 28, 2008 Fees earned ....................................................................... \$377,000 Expenses: Wages expense ........................................................... \$225,000 Office expense ............................................................. 156,650

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Miscellaneous expense .............................................. 6,350 Total expenses ........................................................ 388,000 Net loss .............................................................................. \$ 11,000
PE 1–5A HERAT TRAVEL SERVICE Statement of Owner’s Equity For the Year Ended June 30, 2008 Lola Stahn, capital, July 1, 2007 ...................................... \$ 75,000 Additional investment by owner during year ................ \$ 20,000

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern