College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 1, Problem 2QY
To determine
Find the correct option, the option which indicates the correct amount of owners’ equity of PT Services.
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Below are the accounts of Grace Real Estate in alphabetical order: Accounts Payable $23,100 Accounts Receivable $17,200 Capital $30,900 Cash $28,400 Expenses = $20,000 Furniture and Fittings $18,000 Land & Buildings $37,900 Revenue= $63,500 Salaries payable $4,000 Required: Total Equity($)=
A. $43, 500
B. $30,500
C. $74,400
D. $94,000
The accounting equation for Goodboy's enterprises is as follows: Assets Liabilities Owner's Equity $120,000 = $60,000 + $60,000, If Goodboy's purchases office equipment on account for $12,000, the accounting equation will change to? Show Solution.
Q1. Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018.
Owner investment,2018 $ 32,000 Land $ 7,000
Accounts payable $ 14,000 Notes payable $ 30,000
Accounts receivable $ 1,700 Property tax expense $ 2,900
Advertising expense $ 17,000 KPMS, drawing $ 32,000
Building $ 137,900 Rent expense $ 13,000
Cash $ 6,000 Salary expense $ 69,000
Equipment $ 17,000 Salary payable $ 500
Insurance Expense $ 2,000 Service revenue $ 192,000
Interest Expense $ 6,000 Supplies $ 8,000
KPMS, Capital 12/31/2018 $ 51,000
Requirements:
1. Prepare KPMS Delivery’s income statement.
2. Prepare the statement of owner’s equity.
3. Prepare the balance sheet.
4. Answer these questions about the company:
a. Was the result of operations for the year a profit or a loss? How much?
b. How much in total economic resources does the company have as it moves
into the new year?
c. How much does the company owe to creditors?
d. What is the dollar amount…
Chapter 1 Solutions
College Accounting (Book Only): A Career Approach
Ch. 1 - Prob. 1QYCh. 1 - Prob. 2QYCh. 1 - Which of the following accounts would increase...Ch. 1 - Which of the following statements is true? a....Ch. 1 - M. Parish purchased supplies on credit. What is...Ch. 1 - Define assets, liabilities, owners equity,...Ch. 1 - Prob. 2DQCh. 1 - How do Accounts Payable and Accounts Receivable...Ch. 1 - Describe two ways to increase owners equity and...Ch. 1 - What is the effect on the fundamental accounting...
Ch. 1 - When an owner withdraws cash or goods from the...Ch. 1 - Define chart of accounts and identify the...Ch. 1 - What account titles would you suggest for the...Ch. 1 - Prob. 1ECh. 1 - Determine the following amounts: a. The amount of...Ch. 1 - Dr. L. M. Patton is an ophthalmologist. As of...Ch. 1 - Describe a business transaction that will do the...Ch. 1 - Describe a transaction that resulted in each of...Ch. 1 - Label each of the following accounts as asset (A),...Ch. 1 - Describe a transaction that resulted in the...Ch. 1 - Describe the transactions that are recorded in the...Ch. 1 - On June 1 of this year, J. Larkin, Optometrist,...Ch. 1 - On July 1 of this year, R. Green established the...Ch. 1 - S. Davis, a graphic artist, opened a studio for...Ch. 1 - On March 1 of this year, B. Gervais established...Ch. 1 - In April, J. Rodriguez established an apartment...Ch. 1 - In July of this year, M. Wallace established a...Ch. 1 - In March, K. Haas, M.D., established the Haas...Ch. 1 - P. Schwartz, Attorney at Law, opened his office on...Ch. 1 - In March, T. Carter established Carter Delivery...Ch. 1 - In October, A. Nguyen established an apartment...Ch. 1 - Why Does It Matter? MACS CUSTOM CATERING, Eugene,...Ch. 1 - What Would You Say? A friend of yours wants to...Ch. 1 - Prob. 3A
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- Determine the following amounts: a. The amount of the liabilities of a business that has 60,800 in assets and in which the owner has 34,500 equity. b. The equity of the owner of a tour bus that cost 57,000 and on which is owed 21,800 on an installment loan payable to the bank. c. The amount of the assets of a business that has 11,780 in liabilities and in which the owner has 28,500 equity.arrow_forwardQ1. Presented here are the accounts of KPMS Delivery for the year ended December 31, 2018. Owner investment,2018 $ 32,000 Land $ 7,000 Accounts payable $ 14,000 Notes payable $ 30,000 Accounts receivable $ 1,700 Property tax expense $ 2,900 Advertising expense $ 17,000 KPMS, drawing $ 32,000 Building $ 137,900 Rent expense $ 13,000 Cash $ 6,000 Salary expense $ 69,000 Equipment $ 17,000 Salary payable $ 500 Insurance Expense $ 2,000 Service revenue $ 192,000 Interest Expense $ 6,000 Supplies $ 8,000 KPMS, Capital 12/31/2018 $ 51,000 Requirements: Prepare KPMS Delivery’s income statement. (3 Marks) Prepare the statement of owner’s equity. (3 Marks) Prepare the balance sheet. (3 Marks) Answer these…arrow_forwardIndicate on the columns effected the value of increase or decrease for each accounting element: ASSETS LIABILITIES OWNER’S EQUITY DEBIT CREDIT DEBIT CREDIT DEBIT CREDIT The owner invested P50, 000 cash to start the business. Purchase office supplies on account, payable next week, P2, 000. Collected P10, 000 cash for services rendered to customer. Purchase office machine, 15, 000, P5, 000 down, balance issued with promissory note. Rendered P20, 000 services, collectible next week. Paid the account in number 2. Paid P500 electric bill for electric consumed in conduct of business. Collected the account in number 5. Paid P5, 000 personal drawing of the owner. Received P200 water bill,…arrow_forward
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