c Total assets 2587 0 Total liabilities Stockholders equity Cambridge Business

C total assets 2587 0 total liabilities stockholders

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c. Total assets = $25,870 = Total liabilities + Stockholders’ equity
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©Cambridge Business Publishers, 2017 2-48 Financial Accounting for Undergraduates, 3rdEditionP2-3B. Transaction Analysis (LO2) a. and b. Cash + Accounts Receivable + Automobile = Accounts Payable + Notes Payable + Common Stock + Retained Earnings $8,700 + $18,800 + $0 = $4,600 + $6,500 + $15,400 + $1,000 1. - 1,000 + + = + + + - 1,000 2. + 9,800 + - 9,800 + = + + + 3. - 900 + + = - 900 + + + 4. + 900 + + = + + + + 900 5. + 8,000 + + = + + 8,000 + + 6. + +11,800 + = + + + +11,800 7. - 4,500 + + = + + + - 4,500 8. + + = + 610 + + + - 610 9. - 6,000 + + = + + + - 6,000 10. - 9,800 + + + 9,800 = + + + 11. - 375 + + = + + + - 375 $4,825 + $20,800 + $9,800 = $4,310 + $14,500 + $15,400 + $1,215 $35,425 = $35,425 P2-4B. Transaction Analysis (LO2) a. and b. Cash + Accounts Receivable = Accounts Payable + Common Stock + Retained Earnings 1. $51,000 + = + $51,000 + 2. - 5,500 + = + + - 5,500 3. + = + 3,100 + + - 3,100 4. - 1,900 + = + + - 1,900 5. - 3,500 + = + + - 3,500 6. + 25,000 + = + + + 25,000 7. + + 19,900 = + + + 19,900 8. - 1,500 + = - 1,500 + + 9. + 14,200 + - 14,200 = + + 10. - 16,000 + = + + - 16,000 11. + = + 3,500 + + - 3,500 12. - 6,000 + = + + - 6,000 $55,800 + $5,700 = $5,100 + $51,000 + $5,400 $61,500 $61,500
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©Cambridge Business Publishers, 2017 Solutions Manual, Chapter 22-49 P2-5B. Accounting Equation (LO2) a. [$480,000 - $330,000] = $150,000. b.[$675,000 - $225,000 - $165,000] = $285,000 c. [$500,000 + $300,000 + $255,000] = $1,055,000. P2-6B. Transaction Analysis (LO2) a. Increase assets (Cash) Increase stockholders’ equity (increase Revenue) b. Increase assets (Cash) Increase stockholders’ equity(increase Common stock) c. Increase assets (Office equipment) Increase liabilities (Accounts payable) d. Increase assets (Cash) Increase liabilities (Notes payable) e. Decrease liabilities (Accounts payable) Decrease assets (Cash) f. Increase assets (Accounts receivable) Increase stockholders’ equity (increase Revenue) g. Decrease stockholders’ equity (decrease Retained earnings) Decrease assets (Cash) h. Decrease stockholders’ equity (increase Interest expense) Decrease assets (Cash) i. Increase assets (Cash) Decrease assets (Accounts receivable) P2-7B. Transaction Analysis (LO2) (a) Sale of common stock for $7,000 cash. (b) Purchase of $2,500 in supplies for cash. (c) Borrowed $3,000 cash from a bank, signing a note payable. (d) Purchased $5,000 of equipment for cash. (e) Provided consulting services and billed clients $2,000. (f) Received payment of $1,000 on accounts receivable.
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©Cambridge Business Publishers, 2017 2-50 Financial Accounting for Undergraduates, 3rdEditionP2-8B. Determination of Omitted Financial Statement Data (LO2) A. [$12,700 - $ 19,400] = -$6,700 (Net change in Stockholders’ Equity) [-$6,700 - $2,000 + $5,000] = -$3,700 (Net loss) [$9,500 - $3,700] = $5,800 (Revenues) B. [$28,000 - $21,000] = $7,000 (Net income) [$7,000 - $1,500] = $5,500 (Change in Retained Earnings) [$5,500 + $6,100] = $11,600 (Change in Stockholders’ Equity)[$7,000 + $11,600] = $18,600 (Stockholders’ Equity, ending) [$36,000 - $18,600] = $17,400 (Liabilities, ending) C. [$26,000 - $18,000] = $8,000 (Change in Stockholders’ Equity)[$18,000 - $11,000] = $7,000 (Net income) [$7,000 - $2,000] = $5,000 (Change in Retained Earnings) [$8,000 - $5,000] = $3,000 (Issuance of Common Stock) D. [$24,000 - $17,000 - $6,500] = $ 500 (Change in Retained Earnings) [$500 + $3,500] = $4,000 (Change in Stockholders’ Equity) [$22,000 - $4,000] = $18,000 (Stockholders’ Equity, beginning)[$18,000 + $9,000] = $27,000 (Assets, beginning) P2-9B. Transaction Analysis (LO2) a.[$3,500 + $5,200 + $820 + $12,000] = $21,520 (Total assets) [$3,000 + $600 + $10,920 + $7,000] = $21,520 (Total liabilities + Stockholders’ equity) b.(2) Purchased supplies on account for $670. (3) Purchased equipment for $6,000, giving a note payable. (4) Collected $4,200 on accounts receivable. (5) Provided consulting services and billed clients, $7,800. (6) Paid $600 on accounts payable. (7) Purchased $200 in supplies for cash. (8) Paid cash dividend of $4,600; paid June expenses of $4,600 (9) Borrowed $3,000 cash from a bank, giving a note payable.
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