Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 13E
Exercise 1-13A Classifying events as asset source, use, or exchange
Nevada Company experienced the following events during its first year of operations:
- 1. Acquired an additional $1,000 cash from the issue of common stock.
- 2. Paid $2,400 cash for utilities expense.
- 3. Paid a $1,500 cash dividend to the stockholders.
- 4. Provided additional services for $6,000 cash.
- 5. Purchased additional land for $2,500 cash.
- 6. The market value of the land was determined to be $24,000 at the end of the accounting period.
- 7. Acquired $16,000 cash from the issue of common stock.
- 8. Paid $3,500 cash for salary expense.
- 9. Borrowed $10,000 cash from New South Bank.
- 10. Paid $6,000 cash to purchase land.
- 11. Provided boarding services for $10,500 cash.
Required
Classify each event as an asset source, use, or exchange transaction or as not applicable.
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Question 5
The following year-end unadjusted trial balance is for Jaya as at 31 December 2018.
JayaUnadjusted Trial Balance as at 31 December 2018
RM
Land
610,000
Building
335,000
Accumulated Depreciation - Building
Office Equipment
40,000
Accumulated Depreciation - Equipment
Investment in Shares
380,000
Intangible Assets - Licensing Agreement
70,000
Supplies
41,900
Accounts Receivable
106,400
Cash
33,500
Accounts Payable
Supplies Payable
Long-term Note Payable
Jaya , Capital
Jaya , Withdrawals
90,000
Services Fees Earned
Salaries Expense
213,500
Insurance Expense
25,800
Utilities Expense
32,000
Repair Expense
13,500
Interest Expense
15,000
2,006,600…
Question 2
Base Company carried out the following transactions during Years 1 to Year 6.
Year 1:
January 1: Purchased equipment for $120,000 cash. It has a 10-year life, a $20,000 residual value, and will be depreciated using the straight-line method.
January 1: Purchased land for $280,000 cash.
October 31: Borrowed $340,000 from the bank by issuing a three-month 9% note.
December 31: Accrued interest on the note of October 31. You can round to the nearest full month.
December 31: A pending product liability lawsuit will more likely than not be lost. A reasonable estimate of the loss is $50,000. We accrued the contingency.
December 31: Journalized depreciation on the equipment.
Year 2:
January 31: Repaid the October 31 note plus interest.
Year 6:
July 10: Traded our land (acquired in Year 1) plus $60,000 cash for a small airplane. The airplane has a market value of $380,000.
September 20: Sold the equipment for $52,000 cash. Depreciation expense for Years 2…
Entity A started operations on January 1, 20x1. A summary of the transactions during the year is provided below:1. The owner invested ₱2,000,000 to the business.2. Acquired equipment for ₱1,000,000 cash.3. Obtained a 12%, one-year, bank loan of ₱500,000.4. Paid one-year insurance amounting to ₱160,000 on September 30, 20x1. Entity A uses the “asset method” in recording prepayments.5. Total service fees earned amounted to ₱6,000,000, one-third of which was on cash basis.6. Collected ₱1,800,000 accounts receivable.7. Total salaries expense paid amounted to ₱1,200,000.8. Total utilities expense paid amounted ₱500,000.9. Total supplies purchased on cash basis amounted to ₱120,000. 10. Total owner’s drawings amounted to ₱1,400,000.
Requirements:a. Provide the journal entries for the transactions.b. Post the entries to the ledger using T-accounts.c. Prepare the unadjusted trial balance using a worksheet.d. Prepare the adjusting entries (see additional information below).
Information for…
Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
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