Warren ST_Ch.01_ProbA

Warren ST_Ch.01_ProbA - Prob. 11A 1. Assets = Liabilities +...

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CHAPTER 1 PROBLEMS Prob. 1–1A 1. Owner’s Assets = Liabilities + Equity Jean Jean Accts. Accts. Howard, Howard, Fees Rent Sal. Supp. Auto Misc. Cash + Rec. + Supplies = Payable + Capital Drawing + Earned Exp. Exp. – Exp. Exp. Exp. a. + 50,000 + 50,000 b. + 1,600 + 1,600 Bal. 50,000 1,600 1,600 50,000 c. 500 500 Bal. 49,500 1,600 1,100 50,000 d. + 9,250 + 9,250 Bal. 58,750 1,600 1,100 50,000 9,250 e. 2,500 2,500 Bal. 56,250 1,600 1,100 50,000 9,250 2,500 f. 1,200 900 – 300 Bal. 55,050 1,600 1,100 50,000 9,250 2,500 900 – 300 g. 1,900 1,900 Bal. 53,150 1,600 1,100 50,000 9,250 2,500 – 1,900 900 – 300 h. 1,050 1,050 Bal. 53,150 550 1,100 50,000 9,250 2,500 – 1,900 – 1,050 – 900 – 300 i. + 11,150 + 11,150 Bal. 53,150 11,150 550 1,100 50,000 20,400 2,500 – 1,900 – 1,050 – 900 – 300 j. 2,700 2,700 Bal. 50,450 11,150 550 1,100 50,000 – 2,700 20,400 2,500 1,900 1,050 900 – 300 1
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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. 2
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Prob. 1–2A 1. HEAVENLY TRAVEL SERVICE Income Statement For the Year Ended April 30, 2010 Fees earned. ......................................................................... $600,000 Expenses: Wages expense. ........................................................... $232,640 Rent expense. ............................................................... 80,900 Utilities expense. .......................................................... 49,150 Supplies expense. ........................................................ 13,200 Taxes expense. ............................................................. 10,250 Miscellaneous expense. .............................................. 5,000 Total expenses. ......................................................... 391,140 Net income. .......................................................................... $208,860 2. HEAVENLY TRAVEL SERVICE Statement of Owner’s Equity For the Year Ended April 30, 2010 Jennifer Burch, capital, May 1, 2009. ................................ $ 45,540 Net income for the year. ..................................................... $208,860 Less withdrawals. ................................................................ 25,000 Increase in owner’s equity. ................................................ 183,860 Jennifer Burch, capital, April 30, 2010. ............................. $229,400 3. HEAVENLY TRAVEL SERVICE Balance Sheet April 30, 2010 Assets Liabilities Cash. ................................. $159,200 Accounts payable. ......... $ 14,600 Accounts receivable. ....... 78,000 Supplies. ........................... 6,800 Owner’s Equity Jennifer Burch, capital. . 229,400 Total liabilities and Total assets. ..................... $244,000 owner’s equity. ........... $244,000 3
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Prob. 1–3A
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Warren ST_Ch.01_ProbA - Prob. 11A 1. Assets = Liabilities +...

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