www.downloadslide.net44 1 Accounting in ActionInstructions(a) Show the effects of the previous transactions on the accounting equation using thefollowing format.(a) Total assets £25,800EquityRetained EaningsRev.LiabiliticsAssetsNotesAccountsShareAccountsDate Cash +Receivable+ Supplies + Equipment-PayablePayableCapitalExp.Div..Include margin explanations for any changes in the Retained Earmings account inyour analysis.(b) Prepare an income statement for the month of June.(c) Prepare a statement of financial position at June 30, 2017.(b) Net income £4,450() Cash £8,100P1-5A Financial statement information about four different companies is as follows.Delermine fonancialstatement amounts andprepare retained earningsstatement.CrosbyCompanyStillsCompanyNashCompanyYoungCompany(LO 7, 8)January 1, 2017AssetsLiabilitiesHK$ 900,000 HK$1,100,000(d)500,000HK$1,500,000650,000(a)(g)HKS 750,000450,0001,000,000EquityDecember 31, 2017AssetsLiabilities(b)550,000400,0001,370,000750,000(e)2,000,000(h)1,300,000(k)800,0001,400,000EquityEquity changes in yearAdditional investment(c)100,0003,500,0003,300,000150,000()4,200,0003,850,000150,000100,0005,000,0001)100,000140,000DividendsTotal revenuesTotal expenses(i)3,420,000Instructions(a) Determine the missing amounts. (Hint: For example, to solve for (a), Assets - Liabili-ties = Equity = HK$250,000.)(b) Prepare the retained earnings statement for Stills Company. Assume beginningretained earnings was HK$200,000.(c) Write a memorandum explaining the sequence for preparing financial state-ments and the interrelationship of the retained earnings statement to the incomestatement and statement of financial position.PROBLEMS: SET BAnalye transactions andcompute net inscome.P1-1B On April 1, Holly Dahl established Holiday Travel Agency Ltd. The following trans-actions were completed during the month.1. Shareholders invested €12,000 cash in the business in exchange for ordinary shares.2. Paid €400 cash for April office rent.3. Purchased office equipment for €5,500 cash.4. Incurred €300 of advertising costs in a local newspaper, on account.5. Paid €600 cash for office supplies.6. Performed services worth €8,500: €2,000 cash is received from customers, and thebalance of €6,500 is billed to customers on account.7. Declared and paid a €200 cash dividend.8. Paid the local newspaper amount due in transaction (4).9. Paid employees' salaries €2,200.10. Received €5,700 in cash from customers billed previously in transaction (6).(LO 6, 7) www.downloadslide.net45Problems: Set B(a) Prepare a tabular analysis of the transactions using the following column headings: (a) Ending cash €10,500Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Share Capital,and Retained Earnings (with separate columns for Revenues, Expenses, and Divi-dends). Include margin explanation for any changes in Retained Earnings.(b) From an analysis of the Retained Eamings columns, compute the net income or net (b) Net income €5,600loss for April.equation wInstructionsEquityRetained EarExp

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Description: www.downloadslide.net44 1 Accounting in ActionInstructions(a) Show the effects of the previous transactions on the accounting equation using thefollowing format.(a) Total assets £25,800EquityRetained EaningsRev.LiabiliticsAssetsNotesAccountsShareAcc

(1) The table below shows the recording of accounting transactions:

Business

Accounting

P1-1B On April 1, Holly Dahl established Holiday Travel Agency Ltd. The tollowing trans- actions were completed during the month. 1. Shareholders invested €12,000 cash in the business in exchange for ordinary shares. 2. Paid €400 cash for April office rent. 3. Purchased office equipment for €5,500 cash. 4. Incurred €300 of advertising costs in a local newspaper, on account. 5. Paid €600 cash for office supplies. 6. Performed services worth €8,500: €2,000 cash is received from customers, and the balance of €6,500 is billed to customers on account. 7. Declared and paid a €200 cash dividend. 8. Paid the local newspaper amount due in transaction (4). 9. Paid employees' salaries €2,200. 10. Received €5,700 in cash from customers billed previously in transaction (6).

P1-1B On April 1, Holly Dahl established Holiday Travel Agency Ltd. The tollowing trans- actions were completed during the month. 1. Shareholders invested €12,000 cash in the business in exchange for ordinary shares. 2. Paid €400 cash for April office rent. 3. Purchased office equipment for €5,500 cash. 4. Incurred €300 of advertising costs in a local newspaper, on account. 5. Paid €600 cash for office supplies. 6. Performed services worth €8,500: €2,000 cash is received from customers, and the balance of €6,500 is billed to customers on account. 7. Declared and paid a €200 cash dividend. 8. Paid the local newspaper amount due in transaction (4). 9. Paid employees' salaries €2,200. 10. Received €5,700 in cash from customers billed previously in transaction (6).

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter9: Metric-analysis Of Financial Statements

Section: Chapter Questions

Problem 9.23E: Unusual income statement items Assume that the amount of each of the following items is material to...

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Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
To demonstrate the difference between cash account activity and accrual basis profits (net income), note the amount each transaction affects cash and the amount each transaction affects net income. A. paid balance due for accounts payable $6,900 B. charged clients for legal services provided $5,200 C. purchased supplies on account $1,750 D. collected legal service fees from clients for current month $3,700 E. issued stock in exchange for a note payable $10,000
1. Compute the current assets.Cash Php 25,867.00Barney’s drawing 50,485.00Accounts Payable 78,584.00Notes Receivable 45,051.00Building 1,500,125.00Inventory 33,669.002. Compute the Net Income.Service Income Php 356,867.00Prepaid Rent 16,800.00Interest Expense 1,523.00Barney’s drawing 21,786.00Taxes 4,544.00Utilities Expense 3,651.003. The liabilities of Bb Barn are equal to 1/3 of thetotal assets. The owner's equity is P 6,300,500. Whatis the amount of the liabilities?4. Prepare journal entries to the following transactionsfor the year 2020.Sept. 1 V Barney invested Php 150,000 in Barney repair ShopSept 3 Purchased equipment worth Php 80,000 on account.Sept. 12 Paid Php 25, 000 for the equipmentpurchased dated Sept. 3, 2020.Sept. 15 Rendered service amounting toPhp 45,000.Sept. 17 Paid salaries to employees, Php16,000
. RequiredState whether each item is reported:1. in the statement of financial position2. in profit or loss in the statement of profit or loss and other comprehensive income3. as other comprehensive income in the statement of profit or loss and other comprehensive income4. in the statement of changes in equity5. in the notes to the financial statements.Item How item is reported in financial statements(a) contingent liabilities(b) the effect on retained earnings of the correction of a prior period error(c) cash and cash equivalents(d) capital contributed during the year(e) revaluation gain on land (not reversing any previous revaluation)(f) judgements that management has made in classifying financial assets(g) income tax expense(h) Provisions
Suppose your company sells services of $180 in exchange for $110 cash and $70 on account. prepare journal entry a) Record the service revenue of $110 for cash and $70 on account. dentify the amount that should be reported as net cash flow from operating activities. Identify the amount that would be included in net income. Show how the indirect method would convert net income (requirement 3) to net cash flow from operating activities (requirement 2).
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton CompanyAdjusted Trial BalanceDecember 31 AccountNo. DebitBalances CreditBalances Cash 11 6,323 Accounts Receivable 12 2,013 Prepaid Expenses 13 636 Equipment 18 13,301 Accumulated Depreciation 19 1,235 Accounts Payable 21 1,477 Notes Payable 22 4,321 Bob Steely, Capital 31 12,784 Bob Steely, Drawing 32 668 Fees Earned 41 7,077 Wages Expense 51 2,515 Rent Expense 52 724 Utilities Expense 53 427 Depreciation Expense 54 220 Miscellaneous Expense 59 67 Totals 26,894 26,894 Use the adjusted trial balance for Stockton Company. Determine the net income (loss) for the period. a.Net loss is $6,066. b.Net income is $3,124. c.Net income is $26,894. d.Net loss is $3,124.
T. Nix, Capital$ 128,300Cost of goods sold$ 108,900T. Nix, Withdrawals7,000Depreciation expense11,600Sales183,000Salaries expense39,000Sales discounts4,200Miscellaneous expenses5,000Sales returns and allowances5,200 1. Record the entry to close the income statement accounts with credit balances. 2. Record the entry to close the income statement accounts with debit balances. 3. Record the entry to close the Income Summary account. 4. Record the entry to close the Withdrawals account.
JEY-4322 Inc. reported the following data for last year: JEY-4322 Inc.Balance Sheet Beginning BalanceEnding BalanceAssets Cash$ 128,000$ 139,000Accounts receivable331,000481,000Inventory567,000471,000Plant and equipment, net894,000869,000Investment in Tesla Inc.400,000428,000Land (undeveloped)246,000249,000Total assets$ 2,566,000$ 2,637,000Liabilities and Stockholders' Equity Accounts payable$ 382,000$ 341,000Long-term debt981,000981,000Stockholders' equity1,203,0001,315,000Total liabilities and stockholders' equity$ 2,566,000$ 2,637,000 JEY-4322 Inc.Income StatementSales $ 3,880,000Operating expenses 3,336,800Net operating income 543,200Interest and taxes: Interest expense$ 111,000 Tax expense197,000308,000Net income $ 235,200 JEY-4322 Inc. paid dividends of $123,200 last year. The “Investment in Tesla Inc.” item on the balance sheet represents an investment in the stock of another company. The company's minimum required rate of return is 15%. What was the company’s residual income…
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton CompanyAdjusted Trial BalanceDecember 31 AccountNo. DebitBalances CreditBalances Cash 11 6,115 Accounts Receivable 12 2,051 Prepaid Expenses 13 701 Equipment 18 13,396 Accumulated Depreciation 19 1,298 Accounts Payable 21 1,795 Notes Payable 22 4,834 Bob Steely, Capital 31 12,829 Bob Steely, Drawing 32 961 Fees Earned 41 7,174 Wages Expense 51 3,090 Rent Expense 52 896 Utilities Expense 53 448 Depreciation Expense 54 166 Miscellaneous Expense 59 106 Totals 27,930 27,930 Use the adjusted trial balance for Stockton Company. Determine the total liabilities for the period. a.$6,629 b.$13,396 c.$4,834 d.$1,795
Use the adjusted trial balance for Stockton Company to answer the question that follows. Stockton CompanyAdjusted Trial BalanceDecember 31 AccountNo. DebitBalances CreditBalances Cash 11 6,946 Accounts Receivable 12 2,302 Prepaid Expenses 13 632 Equipment 18 14,319 Accumulated Depreciation 19 1,405 Accounts Payable 21 1,499 Notes Payable 22 4,301 Bob Steely, Capital 31 15,223 Bob Steely, Drawing 32 634 Fees Earned 41 7,214 Wages Expense 51 3,364 Rent Expense 52 829 Utilities Expense 53 351 Depreciation Expense 54 172 Miscellaneous Expense 59 93 Totals 29,642 29,642 Determine the net income (loss) for the period.
‏Find out the missing value assets in an accounting equation if liabilities is OMR 320000 and capital is OMR 119000 Select one : O a . OMR 439000 assets O b . OMR 201000 assets O c . OMR 349000 assets O d . OMR 102000 assets Clear my choice
Account Titles Debit CreditCash $ 7Accounts Receivable 3Supplies 3Equipment 9Accumulated Depreciation $ 2Software 6Accumulated Amortization 2Accounts Payable 4Notes Payable (short-term) 0Salaries and Wages Payable 0Interest Payable 0Income Taxes Payable 0Deferred Revenue 0Common Stock 15Retained Earnings 5Service Revenue 0Depreciation Expense 0Amortization Expense 0Salaries and Wages Expense 0Supplies Expense 0Interest Expense 0Income Tax Expense 0Totals $ 28 $ 28Transactions during 2018 (summarized in thousands of dollars) follow:Borrowed $25 cash on July 1, 2018, signing a six-month note payable.Purchased equipment for $28 cash on July 2, 2018.Issued additional shares of common stock for $5 on July 3.Purchased software on July 4, $3 cash.Purchased supplies on July 5 on account for future use, $7.Recorded revenues on December 6 of $58, including $8 on credit and $50 received in…