Chapter 1 Homework Solutions

Chapter 1 Homework Solutions - Chapter 1 Homework Solutions...

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Chapter 1 Homework Solutions M1–2. SE (1) Retained earnings A (2) Accounts receivable R (3) Sales revenue A (4) Property, plant, and equipment E (5) Cost of goods sold expense A (6) Inventories E (7) Interest expense L (8) Accounts payable A (9) Land E1–5. Req. 1 READ MORE STORE Balance Sheet At December 31, 2006 ASSETS LIABILITIES Cash $48,900 Accounts payable $7,000 Accounts receivable 25,000 Note payable 3,000 Store and office equipment 49,000 Interest payable 120 Total liabilities $10,120 STOCKHOLDERS’ EQUITY Contributed capital $100,000 Retained earnings 12,780 Total stockholders’ equity 112,780 Total assets $122,900 Total liabilities and stockholders' equity $122,900 Req. 2 Net income for the year was $12,780. This is the first year of operations and no dividends were declared or paid to stockholders; therefore, retained earnings is $12,780 (which represents income for one year).
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E1–9. Net Income = Revenues - Expenses
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This note was uploaded on 04/09/2008 for the course BUSACC 0030 taught by Professor Stevenonaitis during the Spring '08 term at Pittsburgh.

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Chapter 1 Homework Solutions - Chapter 1 Homework Solutions...

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