Principles of Accounting
12th Edition
ISBN: 9781133626985
Author: Belverd E. Needles, Marian Powers, Susan V. Crosson
Publisher: Cengage Learning
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Chapter 1, Problem 10EA
To determine
Prepare a statement of
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Owner's Equity is the total amount of money and other things invested by owners when they start the business. Select one: True False
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Task: Your close friend Leslie Lazier is the owner and operator of Lazier Tech, Inc., which wasorganized in 2017. The company’s accountant resigned suddenly in early 2018 without leaving acontact number and Leslie was left with several unanswered questions as it relates to thecomposition of the company’s paid in capital and the total stockholders’ equity. At December31, 2017, the Lazier Tech reported the following extract from the company’s balance sheet.Preferred stock, 6%, $40 par, 1,000,000 shares authorized, none issued $ 0Common stock, $4 par, 600,000 shares authorized, 100,000 shares issued andoutstanding400,000Paid-in capital in excess of par—common $120,000Retained earnings $60,000
During 2018, the company completed the following selected transactions:a. Issued for cash 25,000 shares of preferred stock at par value.b. Issued for cash 40,000 shares of common stock at a price of $10 per share.c. Net income for…
Chapter 1 Solutions
Principles of Accounting
Ch. 1 - What makes accounting a valuable discipline?Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - How are expenses and withdrawals similar, and how...Ch. 1 - How do generally accepted accounting principles...Ch. 1 - Why do managers in governmental and not-for-profit...Ch. 1 - Prob. 1SECh. 1 - Match the descriptions that follow with the...Ch. 1 - Determine the amount missing from each accounting...Ch. 1 - Use the accounting equation to answer each...
Ch. 1 - Use the accounting equation to answer each...Ch. 1 - Prob. 6SECh. 1 - Use the following accounts and balances to prepare...Ch. 1 - Randall Company engaged in activities during the...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Prob. 1EACh. 1 - Financial accounting uses money measures to gauge...Ch. 1 - You have been asked to compare the sales and...Ch. 1 - Use the accounting equation to answer each...Ch. 1 - Daiichi Companys total assets and liabilities at...Ch. 1 - 1. Indicate whether each of the following accounts...Ch. 1 - Listed in random order are some of Oxford Services...Ch. 1 - Dukakis Company had the following accounts and...Ch. 1 - Prob. 9EACh. 1 - Prob. 10EACh. 1 - Complete the financial statements that follow by...Ch. 1 - Prob. 12EACh. 1 - Match the terms that follow with the appropriate...Ch. 1 - Prob. 14EACh. 1 - Prob. 15EACh. 1 - Prob. 1PCh. 1 - The following three independent sets of financial...Ch. 1 - Fuel Designs financial accounts follow. The...Ch. 1 - The accounts of Frequent Ad, an agency that...Ch. 1 - Athena Riding Clubs financial statements follow.Ch. 1 - A list of financial statement items follows....Ch. 1 - Three independent sets of financial statements...Ch. 1 - Prob. 8APCh. 1 - Prob. 9APCh. 1 - Aqua Swimming Clubs financial statements follow....Ch. 1 - Costco Wholesale Corporation is Americas largest...Ch. 1 - Prob. 2CCh. 1 - Prob. 3CCh. 1 - Prob. 4CCh. 1 - Refer to the CVS annual report and the financial...
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- Evaluate the financial status of my icecream business chills and fruit by looking at the general journal. Is my business making a profit or operating at a loss? and how do you know???arrow_forwardPrepare a statement of owners equity using the following information for the Can Due Shop for the month of September 2018.arrow_forwardAlthough Deborah Adefowope has run a small business for many years, she has never kept adequate accounting records. However, a need to obtain a bank loan for the expansion of the business has necessitated the preparation of ‘final’ accounts for the year ended 31 August 2009. As a result, the following information has been obtained after much careful research: Deborah Adefowope’s business assets and liabilities are as follows: As at 1/09/08 31/08/09 Stock in trade GHS8,600 GHS16,800 Debtors for sales 3,900 4,300 Creditors for purchases 7,400 8,900 Rent prepaid 300 420 Electricity accrued due 210 160 Balance at bank 2,300 1,650 Cash…arrow_forward
- During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…arrow_forwardFritz Evans is the owner and operator of Be-The-One, a motivational consulting business. At the end of its accounting period, December 31, 2018, Be-The-One has assets of $400,000 and liabilities of $100,000. Using the accounting equation, determine the following amounts: What is the Owner’s equity as of December 31, 2018? What is the Owner’s equity as of December 31, 2019, assuming that assets decreased by $50,000 and liabilities increased by $20,000 during 2019?arrow_forwardCase Analysis: Analyse the case and find out if Joe Razon was able to compute the totalassets and total owner‟s equity of the business as of the quarter ended December 30, 2018correctly? Show the solutions. Joe Razon, the sole proprietor of the photocopying business that opened October 1, 2018. Forthe quarter ended December 30, 2018, the business was able to make revenues of ₱50,000(all in cash) and it was able to incur expenses of ₱35,000 (all in cash). As the end of thequarter, total liabilities amounted to₱50,000. Joe Razon wants to know the business total assets and total owner‟s equity. Withthe help of his friend who is an accountant, he arrived at ₱75,000 total assets and ₱25,000total owner‟s equity. Moreover, Joe Razon had a Cash investment of ₱45,000 cash andEquipment amounting to ₱30,000.arrow_forward
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