Week1_ch1_solutions [Uploaded]

Week1_ch1_solutions [Uploaded] - FB2100 Accounting I...

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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 1 – Chapter 1 Problem 1-7A (60 minutes) Parts 1 and 2 Assets = Liabilities + Equity Date Cash + Accounts Receivable + Office Equipment = Accounts Payable + Common Stock - Dividends + Revenues - Expenses May 1 +$40,000 = + $40,000 1 - 2,200 = - $2,200 3 + $1,890 = + $1,890 5 - 750 ` = - 750 8 + 5,400 = + $5,400 12 + $2,500 = + 2,500 15 - 750 = - 750 20 + 2,500 - 2,500 = 22 + 3,200 = + 3,200 25 + 3,200 - 3,200 = 26 - 1,890 = - 1,890 27 = + 80 - 80 28 - 750 = - 750 30 - 300 = - 300 30 - 280 = - 280 31 - 1,400 = - $1,400 $42,780 + $ 0 + $1,890 = $ 80 + $40,000 - $1,400 + $11,100 - $5,110
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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 1 – Chapter 1 Problem 1-7A (Continued) Part 3 Graham Company Income Statement For Month Ended May 31 Revenues Consulting services revenue . ........... $11,100 Expenses Rent expense . ...................................... $2,200 Salaries expense . ................................ 1,500 Advertising expense . .......................... 80 Cleaning expense . .............................. 750 Telephone expense. ............................ 300 Utilities expense. ................................. 280 Total expenses . ................................... 5,110 Net income . ................................................. $ 5,990 Graham Company Statement of Retained Earnings For Month Ended May 31 Retained earnings, May 1 . ........................................ $ 0 Plus: Net income . ..................................................... 5,990 5,990 Less: Cash dividends . ............................................... 1,400 Retained earnings, May 31 . ...................................... $4,590 Graham Company Balance Sheet May 31 Assets Liabilities Cash . .............................. $42,780 Accounts payable . ....................... $ 80 Office equipment . ......... 1,890 Equity Common stock . ........................... 40,000 Retained earnings . ...................... 4,590 Total assets . .................. $44,670 Total liabilities and equity . ......... $44,670
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FB2100 – Accounting I – Semester A 2010 Solutions to Assigned Questions – Week 1 – Chapter 1 Problem 1-7A ( Concluded) Part 3—continued Graham Company Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers . ............................... $11,100 Cash paid for rent . ..................................................... (2,200) Cash paid for cleaning . ............................................. (750) Cash paid for telephone . ........................................... (300) Cash paid for utilities . ............................................... (280) Cash paid to employees . .......................................... (1,500) Net cash provided by operating activities . ............. $ 6,070 Cash flows from investing activities Purchase of equipment . ............................................ (1,890)
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This note was uploaded on 10/20/2011 for the course ACC fb200 taught by Professor Tony during the Spring '11 term at American University in Bulgaria.

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Week1_ch1_solutions [Uploaded] - FB2100 Accounting I...

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