{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chap001 Solution Manual

$180,000 = $50,000 $130,000 using the accounting

Info iconThis preview shows pages 14–17. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: $180,000 = $50,000 + $130,000 Using the accounting equation at the beginning of the year: Assets = Liabilities + Equity $180,000 - $80,000 = $60,000 + ? $100,000 = $60,000 + ? Thus : Beginning Equity = $40,000 1-14 Chapter 01 - Accounting in Business Exercise 1-9 (10 minutes) Assets = Liabilities + Equity (a) $95,000 = $30,000 + $65,000 $89,000 = $22,000 + (b) 67,000 $132,000 = (c) $112,000 + $20,000 Exercise 1-10 (15 minutes) Examples of transactions that fit each case include: a. Business acquires office supplies (or some other asset) for cash (or some other asset). Another example is collection of cash from a receivable. b. Business pays an account payable (or some other liability) with cash (or some other asset). c. Business signs a note payable to extend the due date on an account payable. d. Business purchases equipment (or some other asset) on credit. e. Cash withdrawals (or some other asset) paid to the owner(s) of the business; OR, the business incurs an expense paid in cash. f. Business incurs an expense that is not yet paid (for example, when employees earn wages that are not yet paid). g. Owner(s) invest cash (or some other asset) in the business; OR, the business earns revenue and accepts cash (or another asset). 1-15 Chapter 01 - Accounting in Business Exercise 1-11 (30 minutes) Cash + Accounts Receivable + Equip- ment = Accounts Payable + L. Gold, Capital – L. Gold, Withdrawals + Revenues – Expenses a. +$50,000 + $10,000 = + $60,000 b. – 1,600 ______ ______ – $1,600 Bal. 48,400 + + 10,000 = + 60,000 – 1,600 c. _______ + 12,000 +$12,000 ______ _____ Bal. 48,400 + + 22,000 = 12,000 + 60,000 – 1,600 d. + 2,000 ______ _______ ______ + $2,000 _____ Bal. 50,400 + + 22,000 = 12,000 + 60,000 + 2,000 – 1,600 e. _______ + $7,000 ______ _______ ______ + 7,000 _____ Bal. 50,400 + 7,000 + 22,000 = 12,000 + 60,000 + 9,000 – 1,600 f. – 8,000 ______ + 8,000 _______ ______ _____ _____ Bal. 42,400 + 7,000 + 30,000 = 12,000 + 60,000 + 9,000 – 1,600 g. – 2,400 ______ ______ _______ ______ _____ – 2,400 Bal. 40,000 + 7,000 + 30,000 = 12,000 + 60,000 + 9,000 – 4,000 h. + 5,000- 5,000 ______ _______ ______ _____ _____ Bal. 45,000 + 2,000 + 30,000 = 12,000 + 60,000 + 9,000 – 4,000 i. – 12,000 ______ ______ – 12,000 ______ _____ _____ Bal. 33,000 + 2,000 + 30,000 = 0 + 60,000 + 9,000 – 4,000 j. – 500 ______ ______ _______ ______ – $500 _____ _____ Bal. $32,500 + $2,000 + $30,000 = $ + $60,000 – $500 + $9,000 – $4,000 Exercise 1-12 (20 minutes) a. Started the business with the owner investing $20,000 cash. b. Purchased office supplies for $1,500 by paying $1,000 cash and putting the remaining $500 balance on credit. c. Purchased office furniture by paying $8,000 cash....
View Full Document

{[ snackBarMessage ]}

Page14 / 59

$180,000 = $50,000 $130,000 Using the accounting equation...

This preview shows document pages 14 - 17. Sign up to view the full document.

View Full Document Right Arrow Icon bookmark
Ask a homework question - tutors are online