Beruflich Dokumente
Kultur Dokumente
com
238,000
Liabilities
$
212,000
Equity
$
26,000
b. At the beginning of the year, Addison Companys assets are $274,000 and its equity is $205,500. During
the year, assets increase $80,000 and liabilities increase $53,000. What is the equity at the end of the
year?
Assets
Beginning
Change
Ending
274,000
80,000
354,000
Liabilities
$
68,500
53,000
121,500
Equity
$
205,500
27,000
232,500
c. At the beginning of the year, Quaker Companys liabilities equal $75,000. During the year, assets
increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $12,000 during the
year. What are the beginning and ending amounts of equity?
Assets
Beginning
Change
Ending
130,000
60,000
190,000
References
Worksheet
Learning Objective:
01-A1 Define and
interpret the
accounting equation
and each of its
components.
Liabilities
$
$
75,000
(12,000)
63,000
Equity
$
55,000
72,000
127,000
Exercise 1-8
Using the
accounting
equation LO A1,
P1
Learning Objective:
01-P1 Analyze
business transactions
using the accounting
equation.
238,000
Liabilities
$
212,000
Equity
$
26,000
b. At the beginning of the year, Addison Companys assets are $274,000 and its equity is $205,500. During
the year, assets increase $80,000 and liabilities increase $53,000. What is the equity at the end of the
year?
Assets
Beginning
Change
Ending
274,000
80,000
354,000
Liabilities
$
68,500
53,000
121,500
Equity
$
205,500
27,000
232,500
c. At the beginning of the year, Quaker Companys liabilities equal $75,000. During the year, assets
increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $12,000 during the
year. What are the beginning and ending amounts of equity?
Assets
Beginning
Change
Ending
130,000
60,000
190,000
Liabilities
$
75,000
(12,000)
63,000
Equity
$
55,000
72,000
127,000
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Common stock
$ 13,000
13,000
27,625
46,000
18,000
48,750
65,915
Cash dividends
Consulting fees earned
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
2,000
15,000
2,700
6,000
760
580
Using the above information prepare an October income statement for the business.
REAL ANSWERS
Income Statement
For Month Ended October 31
Revenues
Consulting fees earned
15,000
Total revenues
15,000
Expenses
Rent expense
2,700
Salaries expense
6,000
Telephone expense
760
Miscellaneous expenses
580
Total expenses
10,040
$
Net income
4,960
References
Expanded table
Exercise 1-14
Preparing an income
statement LO P2
On October 1, Keisha King organized Real Answers, a new consulting firm; On October 3, the owner
contributed $65,915 cash. On October 31, the company's records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Common stock
$ 13,000
13,000
27,625
46,000
18,000
48,750
65,915
Cash dividends
Consulting fees earned
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
Using the above information prepare an October income statement for the business.
REAL ANSWERS
Income Statement
For Month Ended October 31
Revenues
Consulting fees earned
15,000
Total revenues
15,000
Expenses
Salaries expense
6,000
Rent expense
2,700
Telephone expense
760
Miscellaneous expenses
580
Total expenses
Net income
10,040
$
4,960
2,000
15,000
2,700
6,000
760
580
On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner
contributed $59,280 cash. On October 31, the companys records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Common stock
$ 10,400
16,000
22,100
36,000
18,000
39,000
59,280
Cash dividends
Consulting fees earned
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
2,000
18,000
3,240
7,200
760
580
Using the above information prepare an October statement of retained earnings for Real Answers
REAL ANSWERS
Statement of Retained Earnings
For Month Ended October 31
Retained earnings, October 1
0
6,220
6,220
Less: Dividends
2,000
4,220
References
Expanded table
Exercise 1-15
Preparing a
statement of retained
earnings LO P2
On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner
contributed $59,280 cash. On October 31, the companys records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Common stock
$ 10,400
16,000
22,100
36,000
18,000
39,000
59,280
Cash dividends
Consulting fees earned
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
2,000
18,000
3,240
7,200
760
580
Using the above information prepare an October statement of retained earnings for Real Answers
REAL ANSWERS
Statement of Retained Earnings
For Month Ended October 31
Retained earnings, October 1
6,220
6,220
Less: Dividends
2,000
4,220
REAL ANSWERS
Income Statement
For Month Ended October 31
Revenues:
Consulting fees earned
Expenses:
Salaries expense
Rent expense
Miscellaneous expenses
Telephone expense
$ 18,000
$ 7,200
3,240
580
760
Total expenses
Net income
11,780
$
6,220
On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner
contributed $77,473 cash. On October 31, the companys records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Common stock
$ 2,250
19,000
4,781
36,000
28,000
8,438
77,473
Cash dividends
Consulting fees earned
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
3,360
21,000
3,780
8,400
660
680
Using the above information prepare an October 31 balance sheet for Real Answers.
REAL ANSWERS
Balance Sheet
As of October 31
Assets
Cash
Liabilities
$
Office equipment
2,250
Accounts payable
8,438
28,000
Office supplies
4,781
Land
36,000
Accounts receivable
19,000
Total liabilities
8,438
Equity
Common stock
77,473
Retained earnings
Total assets
90,031
4,120
$
90,031
rev: 07_19_2014_QC_51515
References
Expanded table
Exercise 1-16
Preparing a balance
sheet LO P2
On October 1, Keisha King organized Real Answers, a new consulting firm; on October 3, the owner
contributed $77,473 cash. On October 31, the companys records show the following items and amounts.
Cash
Accounts receivable
Office supplies
Land
Office equipment
Accounts payable
Common stock
$ 2,250
19,000
4,781
36,000
28,000
8,438
77,473
Cash dividends
Consulting fees earned
Rent expense
Salaries expense
Telephone expense
Miscellaneous expenses
3,360
21,000
3,780
8,400
660
680
Using the above information prepare an October 31 balance sheet for Real Answers.
REAL ANSWERS
Balance Sheet
As of October 31
Assets
Cash
Liabilities
$
Accounts receivable
2,250
Accounts payable
19,000
Office supplies
4,781
Office equipment
28,000
Land
36,000
Total liabilities
8,438
Equity
Common stock
77,473
Retained earnings
$
Total assets
90,031
rev: 07_19_2014_QC_51515
REAL ANSWERS
Income Statement
For Month Ended October 31
Revenues:
Consulting fees earned
Expenses:
Salaries expense
Rent expense
Miscellaneous expenses
Telephone expense
$ 21,000
$ 8,400
3,780
680
660
Total expenses
Net income
8,438
13,520
$
7,480
4,120
$
90,031
REAL ANSWERS
Statement of Retained Earnings
For Month Ended October 31
Retained earnings, October 1
$
0
Add: Net income
7,480
7,480
3,360
Less: Dividends
Retained earnings, October 31
4,120
Swiss Group reports net income of $38,000 for 2013. At the beginning of 2013, Swiss Group had $150,000
in assets. By the end of 2013, assets had grown to $200,000.
What is Swiss Group's 2013 return on assets?
Return on assets
Choose Numerator:
Net income
$
38,000
Choose Denominator:
175,000
Return on assets
Return on assets
21.7%
References
Worksheet
Swiss Group reports net income of $38,000 for 2013. At the beginning of 2013, Swiss Group had $150,000
in assets. By the end of 2013, assets had grown to $200,000.
What is Swiss Group's 2013 return on assets?
Return on assets
Choose Numerator:
Net income
$
38,000
Choose Denominator:
175,000
Return on assets
Return on assets
21.7%
Determine the missing amount from each of the separate situations given below.
Assets
Liabilities
Equity
(a)
94,000
53,000
41,000
(b)
120,000
40,000
80,000
(c)
115,000
53,000
62,000
References
Worksheet
Determine the missing amount from each of the separate situations given below.
Assets
Liabilities
Equity
(a)
94,000
53,000
41,000
(b)
120,000
40,000
80,000
(c)
115,000
53,000
62,000
Required:
2. Enter the amount of each transaction on individual items of the accounting equation. (Enter the
transactions in the given order. Enter reductions to account balances with a minus sign.)
Assets
Date
May
Cash
1
Accounts
Receivable
41,500
(2,200)
Office
Equipment
Liabilities
Accounts
Payable
=
1,880
1,880
Equity
Common
Stock
$
41,500
Dividends
Revenues
(720)
5,900
5,900
2,700
(2,700)
12
2,700
15
(740)
20
2,700
2,200
720
3,900
25
3,900
(3,900)
26
(1,880)
(1,880)
85
22
Expenses
3,900
740
85
28
(740)
740
30
(400)
400
30
(260)
260
31
(1,700)
27
45,360
1,880
85
41,500
1,700
$
1,700
12,500
5,145
References
Worksheet
Learning Objective: 01-P2 Identify and prepare basic financial statements and
explain how they interrelate.
Required:
2. Enter the amount of each transaction on individual items of the accounting equation. (Enter the
transactions in the given order. Enter reductions to account balances with a minus sign.)
Assets
Date
May
Cash
1
Accounts
Receivable
41,500
(2,200)
Office
Equipment
Liabilities
Accounts
Payable
=
1,880
1,880
Equity
Common
Stock
$
41,500
Dividends
Revenues
(720)
5,900
5,900
2,700
(2,700)
12
15
(740)
20
2,700
22
2,700
2,200
3,900
25
3,900
(3,900)
26
(1,880)
(1,880)
85
27
Expenses
3,900
720
740
85
28
(740)
740
30
(400)
400
30
(260)
260
31
(1,700)
1,700
45,360
1,700
1,880
85
41,500
12,500
5,145