{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ACG Chapter 02 solutions

ACG Chapter 02 solutions - CHAPTER 2 BASIC ACCOUNTING...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 2 BASIC ACCOUNTING CONCEPTS PROBLEMS P2–2 1. OUTLAW COMPUTER SERVICES Income Statement For the Month Ended January 31, 2011 Fees earned ....................................................................... $22,000 Operating expenses: Salaries expense ......................................................... $3,600 Rent expense ............................................................... 2,500 Automobile expense ................................................... 1,200 Miscellaneous expense .............................................. 700 Total operating expenses ..................................... 8,000 Net income ......................................................................... $14,000 2. OUTLAW COMPUTER SERVICES Retained Earnings Statement For the Month Ended January 31, 2011 Net income for January .......................................................................... $14,000 Less dividends ........................................................................................ 2,000 Retained earnings, January 31, 2011 ................................................... $12,000 3. OUTLAW COMPUTER SERVICES Balance Sheet January 31, 2011 Assets Cash ................................................................................... $12,000 Land .................................................................................... 40,000 Total assets ....................................................................... $52,000 Liabilities Notes payable .................................................................... $10,000 Stockholders’ Equity Capital stock ...................................................................... $30,000 Retained earnings ............................................................. 12,000 Total stockholders’ equity .......................................... 42,000 Total liabilities and stockholders’ equity ....................... $52,000
Image of page 1

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

View Full Document Right Arrow Icon
P2–2, Concluded 4. OUTLAW COMPUTER SERVICES Statement of Cash Flows For the Month Ended January 31, 2011 Cash flows from operating activities: Cash receipts from operating activities .................... $22,000 Cash payments for operating activities .................... 8,000 Net cash flows from operating activities ........................ $14,000 Cash flows from investing activities: Cash payments for land .............................................. (40,000) Cash flows from financing activities: Cash receipts from issuing capital stock ................. $30,000 Cash receipts from notes payable ............................. 10,000
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    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.

    Student Picture

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

  • Left Quote Icon

    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.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    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.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern