Finally find the beginning amount of liabilities by

Info icon This preview shows pages 26–32. Sign up to view the full content.

View Full Document Right Arrow Icon
Finally, find the beginning amount of liabilities by subtracting the beginning balance of equity from the beginning balance of assets: Dec. 31, 2010 Assets ........................................................ $123,000 Equity ......................................................... (24,000 ) Liabilities .................................................. $ 99,000 Problem 1-3A (15 minutes) Affiliated Company Balance Sheet December 31, 2011 Assets .......... $ 90,000Liabilities .................................... $ 34,000 Equity .................................... 56,000 Total assets ..................... $ 90,000 Total liabilities and equity ...... $ 90,000 1-26
Image of page 26

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 01 - Accounting in Business Problem 1-4A (15 minutes) Sun Energy Company Income Statement For Year Ended December 31, 2011 Revenues .................................................. $65,000 Expenses ................................................. 50,000 Net income ................................................... $15,000 Problem 1-5A (15 minutes) Boardwalk Statement of Owner’s Equity For Year Ended December 31, 2011 B. Walk, Capital, Dec. 31, 2010 ....................... $ 8,000 Add: Net income ................................................... 9,000 17,000 Less: Owner withdrawals ................................ (2,000 ) B. Walk, Capital, Dec. 31, 2011 ........................ $15,000 Problem 1-6A (15 minutes) Trimark Statement of Cash Flows For Year Ended December 31, 2011 Cash from operating activities ....................... $ 7,000 Cash used by investing activities ................... (3,000) Cash used by financing activities ................... (3,800 ) Net increase in cash ........................................ 200 Cash, December 31, 2010 ................................ 3,300 Cash, December 31, 2011 ................................ $ 3,500 1-27
Image of page 27
Chapter 01 - Accounting in Business Problem 1-7A (60 minutes) Parts 1 and 2 Assets = Liabilities + Equity Cash + Accounts Receivable + Office Supplies + Office Equipment + Building = Accounts Payable + Notes Payable + M.Right, Capital - M.Right, Withdrawals + Reve- nues - Expen- ses a. +$60,000 + $30,000 + $90,000 b. - 50,000 + $300,000 + $250,000 Bal. 10,000 + 30,000 + 300,000 = + 250,000 + 90,000 c. - 6,000 + 6,000 Bal. 4,000 + 36,000 + 300,000 = + 250,000 + 90,000 d. + $4,000 + 1,000 + $5,000 Bal. 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 e. - 1,000 - $1,000 Bal. 3,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 - 1,000 f. + $4,000 + $4,000 Bal. 3,000 + 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 + 4,000 - 1,000 g. + 8,000 + 8,000 Bal. 11,000 + 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 + 12,000 - 1000 h. - 1,800 - $1,800 Bal. 9,200 + 4,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 - 1,800 + 12,000 - 1,000 i. + 3,000 - 3,000 Bal. 12,200 + 1,000 + 4,000 + 37,000 + 300,000 = 5,000 + 250,000 + 90,000 - 1,800 + 12,000 - 1,000 j. - 500 - 500 Bal. 11,700 + 1,000 + 4,000 + 37,000 + 300,000 = 4,500 + 250,000 + 90,000 - 1,800 + 12,000 - 1,000 k. - 2,500 - 2,500 Bal. $9,200 + $1,000 + $4,000 + $37,000 + $300,000 = $4,500 + $250,000 + $90,000 - $1,800 + $12,000 - $3,500 Part 3 Right Consulting’s net income = $12,000 - $3,500 = $8,500 1-28
Image of page 28

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 01 - Accounting in Business Problem 1-8A (60 minutes) Parts 1 and 2 Assets = Liabilities + Equity Date Cash + Accounts Receivable + Office Equipment = Accounts Payable + J.D. Simpson, Capital J.D. Simpson, Withdrawals + Revenues Expenses May 1 +$60,000 = + $60,000 1 - 3,200 = $3,200 3 + $1,680 = + $1,680 5 - 800 = 800 8 + 4,600 = + $4,600 12 + $3,000 = + 3,000 15 - 850 = 850 20 + 3,000 3,000 = 22 + 2,800 = + 2,800 25 + 2,800 2,800 = 26 - 1,680 = – 1,680 27 = + 60 60 28 - 850 = 850 30 - 200 = 200 30 - 480 = 480 31 - 1,200 = $1,200 $61,140 + $ 0 + $1,680 = $ 60 + $60,000 $1,200 + $10,400 $6,440
Image of page 29
Chapter 01 - Accounting in Business Problem 1-8A (Continued) Part 3 THE SIMPSON CO. Income Statement For Month Ended May 31 Revenues: Consulting services revenue ........... $10,400 Expenses: Rent expense ..................................... $3,200 Salaries expense ................................ 1,700 Advertising expense .......................... 60 Cleaning expense .............................. 800 Telephone expense ............................ 200 Utilities expense ................................. 480 Total expenses ................................... 6,440 Net income ................................................. $ 3,960 THE SIMPSON CO. Statement of Owner’s Equity For Month Ended May 31 J.D. Simpson, Capital, May 1 ................................... $ 0 Plus: Investments by owner .................................... 60,000 Net income ...................................................... 3,960 63,960 Less: Withdrawals by owner ................................... 1,200 J.D. Simpson, Capital, May 31 ................................. $62,760 THE SIMPSON CO. Balance Sheet May 31 Assets Liabilities Cash .............................. $61,140 Accounts payable ................ $ 60 Office equipment .......... 1,680 Equity J.D. Simpson, Capital .......... 62,760 Total assets .................. $62,820 Total liabilities and equity... $62,820 1-30
Image of page 30

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 01 - Accounting in Business Problem 1-8A ( Concluded) Part 3—continued THE SIMPSON CO. Statement of Cash Flows For Month Ended May 31 Cash flows from operating activities Cash received from customers ................................ $10,400 Cash paid for rent ..................................................... (3,200) Cash paid for cleaning ............................................. (800) Cash paid for telephone ........................................... (200) Cash paid for utilities ............................................... (480) Cash paid to employees ........................................... (1,700 ) Net cash provided by operating activities .............. $ 4,020 Cash flows from investing activities
Image of page 31
Image of page 32
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern