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 + +
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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
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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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