Financial Accounting, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134114811
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 36BP
Transaction analysis and the calculation of net income (Learning Objective S) 20-25 min.
Darin Oliver worked as an accountant at a local accounting firm for five years after graduating from college. He recently opened his own accounting practice, which he operates as a corporation. The name of the new entity is Oliver and Associates, Inc. Darin experienced the following events during the first month of operations. Some of the events were personal and did not affect the accounting practice. Others were business transactions and should be accounted for by the business.
| Nov | 3 | Received $80,000 cash proceeds from refinancing his house. |
| 5 | $55,000 of common stock in the business was sold to Darin Oliver. The cash proceeds were deposited in a new Business bank account titled Oliver and Associates, Inc. | |
| 7 | Paid $450 cash for office supplies for the new accounting practice. | |
| 9 | Purchased $3,800 of office furniture tor the accounting practice and agreed to pay the vendor within three months. | |
| 10 | Darin sold 130 shares of Apple stock, which he had owned for several years, receiving $16,500 cash. The cash from the sale of stock was deposited in his personal bank account. | |
| 14 | A representative at a large company telephoned Darin and told him of the company's intention to hire Oliver and Associates. Inc., as its accountants | |
| 20 | Finished accounting work for a client and sent the client a bill for $4,000. The client is expected to pay within two weeks. | |
| 27 29 |
Paid office rent, $1,400. Paid $2,500 on account from the November 9th transaction. |
|
| 30 | Paid $800 of dividends to shareholders of Oliver and Associates, Inc. |
Requirements
- 1. Enter each transaction in the
expanded accounting equation of Oliver and Associates, Inc., as needed, calculating new balances after each transaction. - 2. Determine the following items:
- a. Total assets
- b. Total liabilities
- c. Total
stockholders' equity - d. Net income or net loss for November
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Chapter 1 Solutions
Financial Accounting, Student Value Edition (4th Edition)
Ch. 1 - The text states that accounting is the "language...Ch. 1 - Would you describe accounting as primarily a...Ch. 1 - Prob. 3DQCh. 1 - What are some reasons why accounting has adopted...Ch. 1 - What are some of the uses of financial statements?Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - How is the accounting equation affected by each of...Ch. 1 - In what order should the financial statements be...Ch. 1 - Which financial statement would be most useful to...
Ch. 1 - Prob. 1SCCh. 1 - Prob. 2SCCh. 1 - Which accounting principle specifically states...Ch. 1 - Wave Rider is famous for custom skateboards. At...Ch. 1 - Assume that Wave Rider sold skateboards to a...Ch. 1 - Assume that Wave Rider sold skateboards to another...Ch. 1 - Assume that Wave Rider paid expenses totaling...Ch. 1 - Consider the overall effects of the transactions...Ch. 1 - Prob. 9SCCh. 1 - Prob. 10SCCh. 1 - Prob. 11SCCh. 1 - Prob. 12SCCh. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Prob. 3SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 5SECh. 1 - Prob. 6SECh. 1 - Prob. 7SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Prob. 12SECh. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Prob. 14SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 16AECh. 1 - Prob. 17AECh. 1 - Prob. 18AECh. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Prob. 20AECh. 1 - Prob. 21AECh. 1 - Prob. 22AECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 24BECh. 1 - Prob. 25BECh. 1 - Prob. 26BECh. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Prob. 28BECh. 1 - Prob. 29BECh. 1 - Prob. 30BECh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 32APCh. 1 - Prob. 33APCh. 1 - Prob. 34APCh. 1 - Prob. 35APCh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 37BPCh. 1 - Prob. 38BPCh. 1 - Prob. 39BPCh. 1 - Prob. 40BPCh. 1 - Prob. 1CECh. 1 - Prob. 1CPCh. 1 - Prob. 1CFSAPCh. 1 - Prob. 1EIACh. 1 - Prob. 2EIACh. 1 - Prob. 1FACh. 1 - Prob. 1IACh. 1 - Prob. 1SBACh. 1 - Prob. 1WC
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