homework - Chapter 1 homework 1-3 Use both the internal and...

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Unformatted text preview: Chapter 1 homework 1-3 Use both the internal and external reporting. Use internal reporting to calculate the cost of switching the products, and the budget we can use for the new product. Then use the external reporting to determine consumers response on the new product, and any restrictions on the new product. Answer: 1. Compare their costs of apple vs. windows 2. Customer demands and expected sales 3. Compare sales 1-5 1. whether or not they should invest the firm and when they should sell or buy more of its stock 2. if the firm can pay them back 3. how much money he/she can spend 4. ? 5. ? 6. ? 7. ? Answer: 1. They should invest more or not 2. Because they have loan the money so they want to make sure they can get their money back 3. If they can pay their employers 4. 5. Whether or not the firm can pay the taxes 6. Only apply to firms with stock exchange 7. **1-10 Because IRS has its own government regulation and the GAAP does not. Answer: It is ok to have two sets of books Because of the difference between tax law and financial principal GAAP is for accounting, financial purposes IRS is a federal tax law Chapter 2 homework 2-1 Cash 1400 + accounts receivable 3000 + inventory 4500 + equipment15000 = Asset 23900 2-2 Accounts payable1000 + wages payable900 + laon payable13000 = Libailty 157000 2-3 Retained earnings 5400 + capital stocks 2800 = Owners equity 8200 2-20 1. bs l 2. is 3. bs a 4. is 5. bs is a 6. is answer bs a 7. is 8. bs a 9. bs oe 10. is 11. bs a 12. bs a 13. bs l 14. bs l 15. bs a 16. is 17. bs oe 18. is 2-21 Johnson 6000 Best 40400 Courny 43000 2-23 1) 70,000 2) 74000 60000 + x 9000 = 70000 x = net income 19000 = net income Net income = revenue expenses 74000 = Revenue Chapter 3 homework 3-1 a. Cash, loan payable b. Cash increased, loan payable increased c. Both increased by 85000 d. Total assets increased by 85000, total liabilities increased by 85000 total owners equity no impact Assets = liabilities + owners equity Cash +85000 +85000 3-2 a. Cash, land b. Cash decreased, land increased c. Cash decreased 45000, land increased 45000 d. Total asset increased by 45000 and decreased by 45000, total liabilities no impact, owners equity no impact Assets = liabilities + owners equity Cash -45000 Equip + 45000 3-3 a. Cash, loan payable Assets = liabilities + owners equity Cash -30000-30000 3-4 a. Cash, owners equity b. Assets increased, capital stock increased c. Assets increased by 120000, capital stock increased by 12000 d. Total asset increased by 12000, total liabilities no impact, owners equity increased by 120000 3-5 Assets = liabilities + owners equity a. Cash, building, mortgage payable b. Cash decreased 80000, building increased by 210000, mortgage increased 130000 c.c....
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This note was uploaded on 09/28/2011 for the course ACC 111 taught by Professor Caprio during the Summer '11 term at Mercer County Community College.

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homework - Chapter 1 homework 1-3 Use both the internal and...

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