FM9e_SM01 - CHAPTER 1Solutions USES OF ACCOUNTING...

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Ch1 SE1 to SE4 CHAPTER 1—Solutions USES OF ACCOUNTING INFORMATION AND THE FINANCIAL STATEMENTS Chapter 1, SE 1. 1. g 6. i 2. f 7. d 3. b 8. a 4. c 9. j 5. e 10. h Chapter 1, SE 2. 1. b 4. b 2. c 5. a 3. a Chapter 1, SE 3. 1. a 4. c 2. c 5. a 3. b 6. c Chapter 1, SE 4. 1. Assets = \$120,000 2. Stockholders' Equity = \$ 72,000 3. Liabilities = \$100,000

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Ch1 SE5 to SE 7 Chapter 1, SE 5. 1. Assets = Liabilities + Stockholders' Equity \$240,000 = \$90,000 + Stockholders' Equity \$240,000 – \$90,000 = \$150,000 Stockholders' Equity = \$150,000 2. Assets = 0.2 Assets + \$40,000 Assets – 0.2 Assets = \$40,000 0.8 Assets = \$40,000 Assets = \$40,000 ÷ 0.8 Assets = #VALUE! Liabilities = #VALUE! x 0.2 = #VALUE! Chapter 1, SE 6. 1. Beginning: \$ 45,000 = Liabilities + \$25,000 Liabilities = \$ 20,000 \$ 45,000 = \$ 20,000 + \$25,000 Change: + 30,000 5,000 \$75,000 = \$ 25,000 + Stockholders' Equity End: Stockholders' Equity = \$ 50,000 2. Beginning: Assets = \$ 50,000 + \$96,000 Assets = \$146,000 \$146,000 = \$ 50,000 + \$96,000 Change: + 40,000 30,000 \$186,000 = \$ 20,000 + Stockholders' Equity End: Stockholders' Equity = \$166,000 Chapter 1, SE 7. Net income = \$108,000 Beginning of year Assets = Liabilities + Stockholders' Equity \$280,000 = \$120,000 + \$160,000 During year Investment \$ 40,000 Dividends 48,000 Net Income* 108,000 End of year \$400,000 = \$140,000 + \$260,000 *( \$260,000 – \$160,000 ) – \$40,000 + \$48,000 = \$108,000 + +
Ch1 SE8 Chapter 1, SE 8. Global Company Balance Sheet June 30, 2009 Assets Liabilities Cash \$ 5,800 Wages payable \$ 700 Accounts receivable 1,600 Building 22,000 Stockholders' Equity Common stock \$24,000 Retained earnings 4,700 Total stockholders' equity 28,700 Total liabilities and Total assets \$29,400 stockholders' equity \$29,400 *To balance * +

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Ch1 SE9 Chapter 1, SE 9. Tarech Corporation Income Statement For the Year Ended December 31, 2010 Revenue Service revenue \$4,800 Expenses Total expenses 2,450 Net income \$2,350 Tarech Corporation Statement of Retained Earnings For the Year Ended December 31, 2010 Retained earnings, December 31, 2009 \$ — Net income for the year 2,350 Subtotal \$2,350 Less dividends 410 Retained earnings, December 31, 2010 \$1,940 Tarech Corporation Balance Sheet December 31, 2010 Assets Liabilities Cash \$1,890 Accounts payable \$ 450 Other assets 1,000 Stockholders' Equity Common stock \$ 500 Retained earnings 1,940 Total stockholders' equity 2,440 Total liabilities and Total assets \$2,890 stockholders' equity \$2,890
Ch1 SE10 to E2 Chapter 1, SE 10. Total assets: Beginning balance \$ 80,000 Ending balance \$140,000 Average total assets (\$140,000 + \$80,000) ÷ 2 \$110,000 Net income \$ 15,000 Return on Assets = Net Income = \$15,000 = 0.136 or 13.6% Average Total Assets \$110,000 Chapter 1, E 1. 1.

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FM9e_SM01 - CHAPTER 1Solutions USES OF ACCOUNTING...

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