Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
26th Edition
ISBN: 9781305617063
Author: Carl Warren, Jim Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.25EX
Financial statements
We-Sell Realty, organized August 1, 2016, is owned and operated by Omar Farah. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations?
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Financial Statements
The amounts of the assets and liabilities of Wilderness Travel Service at April 30, 2016, the end of the year, and its revenue and expenses for the year follow. The capital of Harper Borg, owner, was $180,000 at May 1, 2015, the beginning of the year, and the owner withdrew $40,000 during the year.
Accounts payable
$25,000
Accounts receivable
210,000
Cash
146,000
Fees earned
875,000
Miscellaneous expense
15,000
Rent expense
75,000
Supplies
9,000
Supplies expense
12,000
Taxes expense
10,000
Utilities expense
38,000
Wages expense
525,000
Required:
1. Prepare an income statement for the year ended April 30, 2016.
2. Prepare a statement of owner's equity for the year ended April 30, 2016.
3. Prepare a balance sheet as of April 30, 2016. When entering assets, enter them in order of liquidity.
4. What item appears on both the income statement and statement of owner's equity?
Journal entries and trial balanceOn October 1, 2016, Jay Crowley established Affordable Realty, whichcompleted the following transactions during the month:a. Jay Crowley transferred cash from a personal bank account to anaccount to be used for the business in exchange for common stock,
$40,000.b. Paid rent on office and equipment for the month, $4,800.c. Purchased supplies on account, $2,150.d. Paid creditor on account $ 1,100.e. Earned sales commissions, receiving cash, $18,750.
f. Paid automobile expenses (including rental charge) for month, $1,560,nd miscellaneous expenses, $800.g. Paid office salaries, $5,500.h. Determined that the cost of supplies used was $1,500.i. Paid dividends, $1,500.
Instructions1. Journalize entries for transactions (a) through (i), using the followingaccount titles: Cash, Supplies, Accounts Payable, Common Stock,Dividends, Sales Commissions, Kent Expense, Office Salaries Expense.Automobile Expense, Supplies Expense, Miscellaneous Expense.Explanations may…
Financial statements and closing entries
Finders Investigative Services is an investigative services firm that is owned and operated by Stacy Tanner. On June 30, 2016, the end of the fiscal year, the accountant for Finders Investigative Services prepared an end-of-period spreadsheet, a part of which follows:
Account Title
Debits
Credits
Cash
28,000
Accounts Receivable
69,600
Supplies
4,600
Prepaid Insurance
2,500
Building
439,500
Accumulated Depreciation – building
44,200
Accounts Payable
11,700
Salaries Payable
3,000
Unearned Rent
2,000
Stacy Tanner, Capital
373,800
Stacy Tanner, Drwaing
12,000
Service Fees
718,000
Rent Revenue
12,000
Salaries Expense
522,100
Rent Expense
48,000
Supplies Expense
10,800
Depreciation Expense – Building
8,750
Utilities Expense
7,150
Repairs Expense
3,000…
Chapter 1 Solutions
Bundle: Accounting, Loose-Leaf Version, 26th + CengageNOWv2, 2 term Printed Access Card
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - A business had revenues of 640,000 and operating...Ch. 1 - The financial statements are interrelated. (a)...
Ch. 1 - Prob. 1.1APECh. 1 - Prob. 1.1BPECh. 1 - Accounting equation Brock Hahn is the owner and...Ch. 1 - Accounting equation Fritz Evans is the owner and...Ch. 1 - Transactions Arrowhead Delivery Service is owned...Ch. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.4BPECh. 1 - Statement of owners equity Using the income...Ch. 1 - Prob. 1.5BPECh. 1 - Balance sheet Using the following data for Ousel...Ch. 1 - Prob. 1.6BPECh. 1 - Prob. 1.7APECh. 1 - Prob. 1.7BPECh. 1 - Ratio of liabilities to owners equity The...Ch. 1 - Prob. 1.8BPECh. 1 - Types of businesses The following is a list of...Ch. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Prob. 1.5EXCh. 1 - Prob. 1.6EXCh. 1 - Accounting equation Annie Rasmussen is the owner...Ch. 1 - Asset, liability, and owners equity items Indicate...Ch. 1 - Effect of transactions on accounting equation...Ch. 1 - Effect of transactions on accounting equation a.A...Ch. 1 - Effect of transactions on owner's equity Indicate...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and owner's withdrawals The income...Ch. 1 - Net income and owner's equity for four businesses...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items Based on the data presented...Ch. 1 - Prob. 1.18EXCh. 1 - Income statement Dairy Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Prob. 1.21EXCh. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Prob. 1.24EXCh. 1 - Financial statements We-Sell Realty, organized...Ch. 1 - Ratio of liabilities to stockholders equity The...Ch. 1 - Ratio of liabilities to stockholders equity Lowes...Ch. 1 - Transactions On April 1 of the current year,...Ch. 1 - Prob. 1.2APRCh. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On July 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Prob. 1.6APRCh. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Transactions; financial statements On April 1,...Ch. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Prob. 1.6BPRCh. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1CPCh. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CP
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