Financial and Managerial Accounting
Financial and Managerial Accounting
7th Edition
ISBN: 9781259726705
Author: John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
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Question
Chapter 1, Problem 7PSB

1.

To determine

To identify: The effect of given transactions on the accounting equation.

1.

Expert Solution
Check Mark

Explanation of Solution

Financial and Managerial Accounting, Chapter 1, Problem 7PSB
Table (1)

Hence, the cash balance is $130,060,accounts receivables is$675 equipment is $2,400, common stock is $130,000, dividend is $4,000, revenue is $16,925 and expenses is $9,790.

2.

To determine

To prepare: The income statement, statement of retained earnings and balance sheet for the month of June 31,20XX.

2.

Expert Solution
Check Mark

Explanation of Solution

Prepare income statement.

N. Company

Income Statement

For the month ended June 30,20XX

Particulars

Amount

($)

Amount

($)

Revenue:

Service Revenue

16,925

Total Revenue

16,925

Expenses:

Advertising Expenses

1,150

Rent Expenses

6,000

Salary Expenses

1,600

Telephone Expenses

150

Utilities Expenses

890

Total Expense

9,790

Net income

7,135

Table(2)

Hence, net income of .N Company as on June 30, 20XX is $7,135

Prepare statement of retained earnings

N. Company

Retained Earnings Statement

For the month ended June 30,20XX

Particulars

Amount

($)

Opening balance

0

Net income

7,135

Total

7,135

Dividends

(4,000)

Retained earnings

3,135

Table(3)

Hence, the retained earnings of N Company as on June 30, 20XX are $3,135.

Prepare balance sheet

N. Company

Balance sheet

As on June 30, 20XX

Particulars

Amount

($)

Assets

Cash

130,060

Equipment

2,400

Accounts Receivables

675

Total Assets

133,135

Liabilities and Stockholder’s Equity

Liabilities

Stockholder’s Equity

Common Stock

130,000

Retained earnings

3,135

Total stockholders’ equity

133,135

Total Liabilities and Stockholder’s equity

133,135

Table(4)

Hence, the total of the balance sheet of the N Company as on June 30, 20XX is of $133,135.

3.

To determine

To prepare: The statement of cash flows of the M Company.

3.

Expert Solution
Check Mark

Explanation of Solution

Prepare the cash flow statement:

N. Company

Statement of Cash Flows

Month Ended June 30, 20XX

Particulars

Amount

($)

Amount

($)

Cash flow from operating activities

Receipts:

Collections from customers

16,250

Payments:

…Advertising Expense

(1,150)

Rent Expenses

(6,000)

Salary Expenses

(1,600)

Telephone Expenses

(150)

Utilities Expense

(890)

(9,790)

Net cash from operating activities

6,460

Cash flow from investing activities

Purchase of equipment

(2,400)

Net cash from investing activities

(2,400)

Cash flow from financing activities

Issued common stock

130,000

Less: Payment of cash dividends

(4,000)

Net cash from financing activities

126,000

Net increase in cash

130,060

Cash balance, June 1,20XX

0

Cash balance, June 30,20XX

130,060

Table(5)

Hence, the cash balance of the N Company as on June 30, 20XX is $130,060.

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Chapter 1 Solutions

Financial and Managerial Accounting

Ch. 1 - Describe the internal role of accounting for...Ch. 1 - 7. Identify three types of services typically...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - 10. What are some accounting-related professions? 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 - Refer to the financial statements of Google in...Ch. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Applying the accounting equation A1 Total assets...Ch. 1 - Applying the accounting equation A1 Use the...Ch. 1 - Prob. 9QSCh. 1 - Identifying effects of transactions using...Ch. 1 - Identifying effects of transactions using...Ch. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Identifying assets, liabilities, and equity P2...Ch. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Exercise 1-2 Identifying accounting users and uses...Ch. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Exercise 1-8 Using the accounting equation A1...Ch. 1 - Exercise 1-9 Using the accounting equation...Ch. 1 - Exercise 1-10 Analysis using the accounting...Ch. 1 - Exercise 1-11 Identifying effects of transactions...Ch. 1 - Prob. 12ECh. 1 - Exercise 1-13 Identifying effects of transactions...Ch. 1 - Exercise 1-14 Analysis of return on assets A2...Ch. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Exercise 1-17 preparing a balance sheet P2 Use the...Ch. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Problem 1-1A Identifying effects of transactions...Ch. 1 - Problem 1-2A Computing missing information using...Ch. 1 - Prob. 3PSACh. 1 - Problem 1-4A preparing a statement of retained...Ch. 1 - Problem 1-5A Preparing a balances sheet P2 Use the...Ch. 1 - Problem 1-6A Preparing a statement of cash flows...Ch. 1 - Problem 1-7A Analyzing transactions and preparing...Ch. 1 - Problem 1-8.4 Analyzing effects of transactions C4...Ch. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Prob. 1PSBCh. 1 - Problem 1-2B Computing missing information using...Ch. 1 - Problem 1-9B analyzing transactions and preparing...Ch. 1 - Prob. 4PSBCh. 1 - Problem 1-5B Preparing a balance sheet P2 Use the...Ch. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Problem 1-8B Analyzing effects of transactions C4...Ch. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - Prob. 1SPCh. 1 - Key financial figures for Apple’s fiscal year...Ch. 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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