Connect Access Card for Fundamental Accounting Principles
Connect Access Card for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259693878
Author: John J Wild
Publisher: McGraw-Hill Education
Question
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Chapter 1, Problem 2BPSB
To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: Balance sheet provides details of firm’s assets, liabilities and owner’s equity for a given date. The Balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The Balance sheet follow the below rule

Assets = Liabilities + equity

Income Statement: It is also called profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by the company during a period and the use of the cash.

1.

To determine: The following about company V.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Net income or loss for the year 2017.

Expert Solution
Check Mark

Explanation of Solution

The amount of equity and net income or loss, about company V is as below:

a. Amount of equity as on December 31, 2016 = $29,000

Equity= AssetsLiabilities =$54,000$25,000 = $29,000

b. Amount of equity as on December 31, 2017=$23,000

Equity= Assets Liabilities =$59,000$36,000 = $23,000

c. Net income or loss for the year 2017 is the loss of $5,500.

Net income/loss = Closing equity + Cash withdrawals  Owner investments opening equity

= $23,000 + $5,500 $5,000$  $ 29,000 =$5,500

2.

To determine

The following about company W.

a. Amount of equity as on December 31, 2016.

b. Amount of equity as on December 31, 2017.

c. Amount of liabilities as on December 31, 2017.

Expert Solution
Check Mark

Explanation of Solution

The amount of equity and liabilities, about company W is as below:

a. Amount of equity as on December 31, 2016 = $20,000

Equity= Assets Liabilities =$80,000$60,000 = $20,000

b. Amount of equity as on December 31, 2017=$78,000

Closing equity = Opening equity+ Owner investment  Cash withdrawals +Net income/loss

=$20,000 +$20,000  $2,000 + $40,000

c. Amount of liabilities as on December 31, 2017 is $22,000

Liabilities = Assets  Equity

= $100,000  $78,000 =$22,000

3.

To determine

To Compute: The amount of owner investment for company X during 2017.

Expert Solution
Check Mark

Explanation of Solution

The amount of owner investment for company X during 2017 is $29,200

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

=$141,500 $68,500 =$73,000

Amount of equity on December 2017 = Assets - Liabilities

=$186,500 $65,800 =$120,700

Owner investment = Closing equity opening equity Net income cash withdrawals

=$120,700  $73,000  $18,500 0=$29,200

4.

To determine

To Compute: The amount of assets for company Y on December 31, 2017.

Expert Solution
Check Mark

Explanation of Solution

The amount of assets for company Y on December 31, 2017, is $135,100

Calculations:

Amount of equity on December 2016 = Assets - Liabilities

=$92,500 $51,500 =$41,000

Amount of equity on December 2017 =

Opening equity + Owner investment  Cash withdrawals +Net income/loss

=$41,000 + $48,100  $20,000 + $24,000 =$93,100

Assets on December 31, 2017 = Liabilities + Equity

= $42,000 +$93,100 = $135,100

5.

To determine

To Compute: The amount of liabilities for company Z on December 31, 2016.

Expert Solution
Check Mark

Explanation of Solution

The amount of liabilities for company Z on December 31, 2016, is $100,000.

Calculations:

Amount of equity on December 2017 = Assets  Liabilities

=$170,000 $42,000 =$128,000

Amount of equity on December 2016 =

Closing equity  Owner investment + Cash withdrawals Net income/loss

=$128,000  $60,000 + $8,000  $32,000 = $44,000

Liabilities on December 31, 2016 = Assets  Equity

= $144,000  $44,000 = $100,000

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Chapter 1 Solutions

Connect Access Card for Fundamental Accounting Principles

Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Exercise 1–16 Preparing a statement of owner’s...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 1APSACh. 1 - Prob. 2APSACh. 1 - Prob. 3APSACh. 1 - Prob. 4APSACh. 1 - Prob. 5APSACh. 1 - Prob. 6APSACh. 1 - Prob. 7APSACh. 1 - Prob. 8APSACh. 1 - Prob. 9APSACh. 1 - Prob. 10APSACh. 1 - Prob. 11APSACh. 1 - Problem 1–12AA Identifying risk and...Ch. 1 - Prob. 13APSACh. 1 - Prob. 14APSACh. 1 - Prob. 1BPSBCh. 1 - Prob. 2BPSBCh. 1 - Prob. 3BPSBCh. 1 - Prob. 4BPSBCh. 1 - Prob. 5BPSBCh. 1 - Prob. 6BPSBCh. 1 - Prob. 7BPSBCh. 1 - Prob. 8BPSBCh. 1 - Prob. 9BPSBCh. 1 - Prob. 10BPSBCh. 1 - Prob. 11BPSBCh. 1 - Prob. 12BPSBCh. 1 - Prob. 13BPSBCh. 1 - Prob. 14BPSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 8BTNCh. 1 - Prob. 9BTN
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