chapter01probsetc

# chapter01probsetc - PROBLEM 1-1C The following...

This preview shows pages 1–2. Sign up to view the full content.

The following financial statement information is from five separate proprietorships: CompanyCompanyCompanyCompanyCompany A B C D E December 31, 2004: Assets \$75,000 \$48,500 \$79,000 \$80,000 ? Liabilities 42,000 25,000 50,000 45,000 \$10,000 December 31, 2005: Assets ? 40,000 101,000 56,000 40,000 Liabilities 20,000 13,000 ? 31,000 10,000 During year 2005: Stock issuances 1,000 5,000 - 0 - 3,000 5,000 Net income (loss) 20,000 ? (6,000) ? 10,000 Cash dividends 7,000 7,500 1,000 1,000 15,000 1. Answer the following questions about Company A: a. What is the equity amount on December 31, 2004? b. What is the equity amount on December 31, 2005? c. What is the amount of assets on December 31, 2005? 2. Answer the following questions about Company B: a. What is the equity amount on December 31, 2004? b. What is the equity amount on December 31, 2005? c. What is net income (loss) for year 2005? 3. Calculate the amount of liabilities for Company C on December 31, 2005. 4. Calculate the amount of income (loss) for Company D during year 2005. 5. Calculate the amount of assets for Company E on December 31, 2004. PROBLEM 1-2C Identify how each of the following separate transactions affects financial statements. For the balance sheet, identify how each transaction affects total assets, total liabilities, and equity. For the income statement, identify how each transaction affects net income. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from financing activities, and cash flows from investing activities. For increases, place a “+” in the column or columns. For decreases, place a “-“ in the column or columns. If both an increase and a decrease occur, place a “+/-“ in the column or columns. The first transaction is completed as an example.

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.

## This note was uploaded on 09/23/2010 for the course FIN 310 taught by Professor Smith during the Fall '10 term at Arizona Western College.

### Page1 / 5

chapter01probsetc - PROBLEM 1-1C The following...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online