Chapter_1_B_Problem_Solutions

Chapter_1_B_Problem_Solutions - Prob. 11B 1. Assets =...

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Prob. 1–1B 1. Owner’s Assets = Liabilities + Equity Ana Ana Accts. Accts. Urbin, Urbin Fees Rent Sal. Supp. Auto Misc. Cash + Rec. + Supplies = Payable + Capital Drawing + Earned – Exp. Exp. – Exp. Exp. Exp. a. + 40,000 + 40,000 b. + 1,500 + 1,500 Bal. 40,000 1,500 1,500 40,000 c. 800 800 Bal. 39,200 1,500 700 40,000 d. + 7,250 + 7,250 Bal. 46,450 1,500 700 40,000 7,250 e. 2,500 2,500 Bal. 43,950 1,500 700 40,000 7,250 2,500 f. 1,400 1,000 – 400 Bal. 42,550 1,500 700 40,000 7,250 2,500 – 1,000 – 400 g. 2,000 2,000 Bal. 40,550 1,500 700 40,000 7,250 2,500 – 2,000 – 1,000 – 400 h. 1,100 1,100 Bal. 40,550 400 700 40,000 7,250 2,500 – 2,000 – 1,100 – 1,000 – 400 i. + 9,350 + 9,350 Bal. 40,550 9,350 400 700 40,000 16,600 2,500 – 2,000 – 1,100 – 1,000 – 400 j. 3,000 3,000 Bal. 37,550 9,350 400 700 40,000 – 3,000 16,600 2,500 2,000 1,100 1,000 – 400 2. Owner’s equity is the right of owners to the assets of the business. These rights are increased by owner’s investments and revenues and decreased by owner’s withdrawals and expenses.
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Prob. 1–2B 1. ABYSS TRAVEL SERVICE Income Statement For the Year Ended June 30, 2008 Fees earned. ......................................................................... $375,000 Expenses: Wages expense. ........................................................... $145,400 Rent expense. ............................................................... 50,600 Utilities expense. .......................................................... 31,200 Supplies expense. ........................................................ 8,250 Taxes expense. ............................................................. 6,400 Miscellaneous expense. .............................................. 3,150 Total expenses. ......................................................... 245,000 Net income. .......................................................................... $130,000 2. ABYSS TRAVEL SERVICE Statement of Owner’s Equity For the Year Ended June 30, 2008 Megan Koch, capital, July 1, 2007. .................................... $ 60,000 Net income for the year. ...................................................... $130,000 Less withdrawals. ................................................................ 50,000 Increase in owner’s equity. ................................................ 80,000 Megan Koch, capital, June 30, 2008. ................................. $140,000 3. ABYSS TRAVEL SERVICE Balance Sheet June 30, 2008 Assets Liabilities Cash. ................................. $ 99,500 Accounts payable. .......... $ 12,500 Accounts receivable. ....... 48,750 Supplies. ........................... 4,250 Owner’s Equity Megan Koch, capital. ...... 140,000 Total liabilities and Total assets. ..................... $152,500 owner’s equity. ........... $152,500
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Prob. 1–3B 1. FIREFLY COMPUTER SERVICES
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Chapter_1_B_Problem_Solutions - Prob. 11B 1. Assets =...

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