Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 8SC
Consider the overall effects of the transactions in questions 5, 6, and 7 on Wave Rider. What is Wave Rider's net income or net loss?
- a. Net loss of $4,000
- b. Net income of $46,000
- c. Net income of $14,000
- d. It cannot be determined from the data given.
5. Assume that Wave Rider sold skateboards to a department store for $28,000 cash. How would this transaction affect Wave Rider's
- a. Increase both assets and
stockholders' equity by $28,000 - b. Will not affect the accounting equation because the effects cancel out
- c. Increase both assets and liabilities by $28,000
- d. Increase both liabilities and stockholders' equity by $28,000
6. Assume that Wave Rider sold skateboards to another department store for $18,000 on account. Which parts of the accounting equation does a sale on account affect?
- a. Accounts Payable and Cash
- b. Accounts Receivable and
Retained Earnings - c. Accounts Receivable and Accounts Payable
- d. Accounts Payable and Retained Earnings
7. Assume that Wave Rider paid expenses totaling $32,000. How does this transaction affect Wave Rider's accounting equation?
- a. Increases assets and decreases liabilities
- b. Decreases both assets and stockholders' equity
- c. Increases both assets and stockholders' equity
- d. Decreases assets and increases liabilities
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Students have asked these similar questions
If a business owner invests $5,000 in cash into the business, which side of the T for the cash account would the $5,000 be recorded?
Debit Credit Net income It would not be recorded because the cash comes from the owner.
Complete the columns to show the effect of the following transactions:
Transaction
Asset
Liability
Capital
(a) Bought a motor Van on credit $500
(b) Repaid by cash a loan owed to P Smith $1,000
(c) Bought goods for $150 paying by cheque
(d) The owner puts a further $5,000 cash into the business
(e) A debtor returns to us $80 goods. we agree to make an allowance for them
(f) Bought goods on credit $220
(g) The owner takes out $100 cash for his personal use.
Show that the accounting equation is satisfied after taking into consideration each of the following transactions in the books of Mr. N
1. Started business with capital 1,00,000
2. Bought furniture 25,000
3. Bought goods for cash 20,000
4. Bought goods from Ram on Credit 5,000
5. Sold goods for cash for 15,000
6. Sold goods to Shyam on credit 8,000
7. Paid cash to Ram 4,000
8. Received cash from Shyam 5,000
9. Paid Cash into Bank 25,000
10. Withdrawn from bank 10,000
Chapter 1 Solutions
Financial Accounting, Student Value Edition (5th 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 - The balance sheet reports a. a businesss financial...Ch. 1 - The income statement reports a. a business's...Ch. 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 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Prob. 14SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 17AECh. 1 - Using the accounting equation to determine net...Ch. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Types of business organizations and balance sheet...Ch. 1 - Types of accounts and income statement preparation...Ch. 1 - Using the accounting equation to determine net...Ch. 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 - A Preparing the income statement, statement of...Ch. 1 - Preparing the income statement and balance sheet;...Ch. 1 - Prob. 35APCh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 37BPCh. 1 - Prob. 38BPCh. 1 - Preparing the income statement and balance sheet;...Ch. 1 - Prob. 40BPCh. 1 - Prob. 1CECh. 1 - This problem is the first problem in a sequence...Ch. 1 - Prob. 1CFSAPCh. 1 - Prob. 1EIACh. 1 - Prob. 2EIACh. 1 - Prob. 1FACh. 1 - Industry Analysis Purpose: To help you understand...Ch. 1 - Prob. 1SBACh. 1 - Prob. 1WC
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