Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory. Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable. Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense. Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land. Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings . To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

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Answer 1

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

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Following is a list of balance sheet accounts for Branman Co. as of December 31, 2018. Solve, a. Classify each of the following accounts as an asset, liability, or net worth. b. What is the balance in the Retained Earnings account if the data forms a valid balance sheet?

Answer 2

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

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Answer 3

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

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Answer 4

Question

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

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Answer 5

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Answer 6

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

Answer 7

Chapter 1, Problem 1.8E

(a)

To determine

Assets (A): Assets are those items that provide value for money and future economic benefit for an organization. In simple, it can be referred to as resources possess by a business. Example: Cash, accounts receivable, inventory.

Liabilities (L): Liabilities are debt and obligations of a business. These are the claims of creditors and financial institutions against the resources of the business. Example: Accounts payable, long-term debt, and notes payable.

Expenses (E): Expenses are the costs that the businesses spend to produce and sell the goods and services to the customers or clients. Example: Cost of goods sold, rent expense, and interest expense.

Revenues (R): Revenues are the income or earnings that a business receives for delivering the goods and services. Example: Service revenue, interest revenue, and gain from sale of land.

Stockholders’ equity (SE): Stockholders’ equity is owners’ claim on the assets. Example: Common stock and retained earnings.

To identify: whether the given item is an asset (A), Liability (L), Stockholders’ equity (SE), Revenue (R), or Expense (E) item.

Answer 8

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Answer 9

(b)

To determine

To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 1 - Prob. 1Q Ch. 1 - Prob. 2Q Ch. 1 - Prob. 3Q Ch. 1 - Accounting is ingrained in our society and is...Ch. 1 - Prob. 5Q Ch. 1 - Prob. 6Q Ch. 1 - What are the three main types of business...Ch. 1 - Prob. 8Q Ch. 1 - Prob. 9Q Ch. 1 - Prob. 10Q

Solution Summary: The author identifies assets, liabilities, stockholders' equity, revenue, or Expense (E). Assets provide value for money and future economic benefit for an organization.

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To prepare: An income statement for Incorporation L for the year ended December 31, 2017.

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