Ex. 1–15 Juliet Stockholders’ equity at end of year ($1,125,000 – $500,000)……………………… $625,000 Deduct stockholders’ equity at beginning of year ($600,000 – $150,000)……… 450,000 Net income (increase in stockholders’ equity)………………………………… $175,000 Kilo Increase in stockholders’ equity (as determined for Juliet)……………………… $175,000 Add dividends……………………………………………………………………………… 55,000 Net income……………………………………………………………………………… $230,000 Lima Increase in stockholders’ equity (as determined for Juliet)……………………… $175,000 Deduct additional issuance of capital stock………………………………………… 100,000 Net income……………………………………………………………………………… $ 75,000 Mike Increase in stockholders’ equity (as determined for Juliet)……………………… $175,000 Deduct additional issuance of capital stock………………………………………… 100,000 $ 75,000 Add dividends……………………………………………………………………………… 55,000 Net income……………………………………………………………………………… $130,000 Ex. 1–16 Balance sheet items: 1, 2, 3, 5, 6, 10 Ex. 1–17 Income statement items: 4, 7, 8, 9
Prob. 1–3A (Concluded) 4. (Optional) RELIANCE FINANCIAL SERVICES Statement of Cash Flows For the Month Ended July 31, 2014 Cash flows from operating activities: Cash received from customers $110,000 Deduct cash payments for expenses and payments to creditors* (112,400) Net cash flows used for operating activities $ (2,400) Cash flows from investing activities 0 Cash flows from financing activities: Cash received from issuing capital stock $ 50,000 Deduct cash dividends (15,000) Net cash flows from financing activities 35,000 Net increase in cash and July 31, 2014, cash balance $ 32,600 * $3,600 + $33,000 + $20,800 + $55,000; these amounts are taken from the cash column shown in the problem.
Prob. 1–4A (Concluded) 2. SUNRISE REALTY Retained Earnings Statement For the Month Ended October 31, 2014 Retained earnings, October 1, 2014 $ 0 Net income for October $23,650 Less dividends 3,000 Increase in retained earnings 20,650 Retained earnings, October 31, 2014 $20,650 SUNRISE REALTY Balance Sheet October 31, 2014 Assets Liabilities Cash $38,500 Accounts payable $ 1,400 Supplies 1,550 Stockholders’ Equity Capital stock $18,000 Retained earnings 20,650 Total stockholders’ equity 38,650 Total liabilities and Total assets $40,050 stockholders’ equity $40,050
Prob. 1–5A 1. Assets = Liabilities + Stockholders’ Equity Cash + Accounts Receivable + Supplies + Land = Accounts Payable + Capital Stock + Retained Earnings $45,000 + $93,000 + $7,000 + $75,000 = $40,000 + $60,000 + Retained Earnings $220,000 = $100,000 + Earnings $120,000 = Retained Earnings
CHAPTER 1 Introduction to Accounting and Business Prob. 1–4B 1. Assets = Liabilities + Stockholders’ Equity Cash + Supplies = Accts. Payable + Capital Stock – + Sales Comm. – Rent Exp. – Exp. – Auto Exp. – Exp. – Misc. Exp. (a) + 24,000 + 24,000 (b) – 3,600 – 3,600 Bal. 20,400 24,000 – 3,600 (c) – 1,950 – 1,350 – 600 Bal. 18,450 24,000 – 3,600 – 1,350 – 600 (d) + 1,200 + 1,200 Bal. 18,450 1,200 1,200 24,000 – 3,600 – 1,350 – 600 (e) + 19,800 + 19,800 Bal. 38,250 1,200 1,200 24,000 19,800 – 3,600 – 1,350 – 600 (f) – 750 – 750 Bal. 37,500 1,200 450 24,000 19,800 – 3,600 – 1,350 – 600 (g) – 2,500 – 2,500 Bal. 35,000 1,200 450 24,000 19,800 – 3,600 – 2,500 – 1,350 – 600 (h) – 3,500 – 3,500 Bal. 31,500 1,200 450 24,000 – 3,500 19,800 – 3,600 – 2,500 – 1,350 – 600 (i) – 900 – 900 Bal. 31,500 300 450 24,000 – 3,500 19,800 – 3,600 – 2,500 – 1,350 – 900 – 600 1-34 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Prob. 1–5B 1. Assets Accounts = Liabilities + Accounts Capital Equity Retained Cash + Receivable + Supplies + Land = Payable + Stock + Earnings $39,000 + $80,000 + $11,000 + $50,000 = $31,500 + $50,000 + Retained Earnings $180,000 = $81,500 + Earnings $98,500 = Retained Earnings
Prob. 1–5B (Continued) 2. Assets = Liabilities + Stockholders’ Equity Cash Accts. + Rec. + Supplies + Land Accts. = Payable + Capital Stock + Retained Earnings – Dividends Bal. 39,000 80,000 11,000 50,000 31,500 50,000 (a) + 21,000 + 21,000 Bal. 60,000 80,000 11,000 50,000 31,500 71,000 (b) – 35,000 + 35,000 Bal. 25,000 80,000 11,000 85,000 31,500 71,000 (c) – 4,000 Bal. 21,000 80,000 11,000 85,000 31,500 71,000 (d) + 72,000 Bal. 21,000 152,000 11,000 85,000 31,500 71,000 (e) – 20,000 – 20,000 Bal. 1,000 152,000 11,000 85,000 11,500 71,000 (f) + 8,000 + 8,000 Bal. 1,000 152,000 19,000 85,000 19,500 71,000 (g) + 38,000 Bal. 39,000 152,000 19,000 85,000 19,500 71,000 (h) + 77,000 – 77,000 Bal. 116,000 75,000 19,000 85,000 19,500 71,000 (i) + 29,450 Bal. 116,000 75,000 19,000 85,000 48,950 71,000 (j) – 29,200 Bal. 86,800 75,000 19,000 85,000 48,950 71,000 (k) – 7,200 Bal. 86,800 75,000 11,800 85,000 48,950 71,000 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 98,500 0 (l) – 5,000 – 5,000 Bal. 81,800 75,000 11,800 85,000 48,950 71,000 98,500 – 5,000
Prob. 1–5B (Continued) Stockholders’ Equity (Continued) Dry Cleaning + Revenue Dry Cleaning – Exp. – Wages Exp. – Exp. – Rent Exp. – Exp. – Exp. – Misc. Exp. Bal. (a) Bal. (b) Bal. (c) – 4,000 Bal. (d) + 72,000 – 4,000 Bal. 72,000 – 4,000 (e) Bal. 72,000 – 4,000 (f) Bal. 72,000 – 4,000 (g) + 38,000 Bal. 110,000 – 4,000 (h) Bal. (i) 110,000 – 29,450 – 4,000 Bal. (j) 110,000 – 29,450 – 24,000 – 4,000 – 2,100 – 1,800 – 1,300 Bal. (k) 110,000 – 29,450 – 24,000 – 7,200 – 4,000 – 2,100 – 1,800 – 1,300 Bal. 110,000 – 29,450 – 24,000 – 7,200 – 4,000 – 2,100 – 1,800 – 1,300 (l) Bal. 110,000 – 29,450 – 24,000 – 7,200 – 4,000 – 2,100 – 1,800 – 1,300
CONTINUING PROBLEM 1. Assets = Liabilities + Stockholders’ Equity Cash Accts. + Rec. + Supplies = Accts. Payable + Capital Stock – Fees + Earned June 1 + 4,000 + 4,000 June 2 + 3,500 + 3,500 Bal. 7,500 4,000 3,500 June 2 – 800 Bal. June 4 6,700 + 350 + 350 4,000 3,500 Bal. 6,700 350 350 4,000 3,500 June 6 – 500 Bal. 6,200 350 350 4,000 3,500 June 8 – 675 Bal. 5,525 350 350 4,000 3,500 June 12 – 350 Bal. 5,175 350 350 4,000 3,500 June 13 – 100 – 100 Bal. 5,075 350 250 4,000 3,500 June 16 + 300 + 300 Bal. 5,375 350 250 4,000 3,800 June 22 + 1,000 + 1,000 Bal. 5,375 1,000 350 250 4,000 4,800 June 25 + 500 + 500 Bal. 5,875 1,000 350 250 4,000 5,300 June 29 – 240 Bal. 5,635 1,000 350 250 4,000 5,300 June 30 + 900 + 900 Bal. 6,535 1,000 350 250 4,000 6,200 June 30 – 400 Bal. 6,135 1,000 350 250 4,000 6,200 June 30 – 300 Bal. 5,835 1,000 350 250 4,000 6,200 June 30 – 180 Bal. 5,835 1,000 170 250 4,000 6,200 June 30 – 415 Bal. 5,420 1,000 170 250 4,000 6,200 June 30 – 1,000 Bal. 4,420 1,000 170 250 4,000 6,200
Continuing Problem (Continued) Stockholders’ Equity (Continued) Music – Exp. – Office Rent Exp. – Exp. tising – Exp. Wages – Exp. Utilities – Exp. – Exp. – Misc. Exp. June 1 June Bal. June 2 2 – 800 Bal. June 4 – 800 Bal. June 6 – 800 – 500 Bal. June 8 – 800 – 675 – 500 Bal. June 12 – 350 – 800 – 675 – 500 Bal. June 13 – 350 – 800 – 675 – 500 Bal. June 16 – 350 – 800 – 675 – 500 Bal. June 22 – 350 – 800 – 675 – 500 Bal. June 25 – 350 – 800 – 675 – 500 Bal. – 350 – 800 – 675 – 500 June 29 – 240 Bal. June 30 – 590 – 800 – 675 – 500 Bal. June 30 – 590 – 800 – 675 – 500 – 400 Bal. June 30 – 590 – 800 – 675 – 500 – 400 – 300 Bal. June 30 – 590 – 800 – 675 – 500 – 400 – 300 – 180 Bal. June 30 – 590 – 800 – 675 – 500 – 400 – 300 – 180 – 415 Bal. – 590 – 800 – 675 – 500 – 400 – 300 – 180 – 415 June 30 – 1,000
CHAPTER 1 Introduction to Accounting and Business CP 1–3 1. Assets = + Accts. Lisa Duncan, Lisa Duncan, Fees Owner’s Equity Salaries Rent Supplies Misc. Cash + Supplies = Payable + Capital – Drawing + Earned – Expense – Expense – Expense – Exp. (a) + 950 + 950 (b) – 300 + 300 Bal. 650 300 950 (c) – 275 – 275 Bal. 375 300 950 – 275 (d) – 100 + 150 – 250 Bal. 275 300 150 950 – 525 (e) + 1,750 + 1,750 Bal. 2,025 300 150 950 1,750 – 525 (f) + 600 + 600 Bal. 2,625 300 150 950 2,350 – 525 (g) – 800 – 800 Bal. 1,825 300 150 950 2,350 – 800 – 525 (h) – 290 – 290 Bal. 1,535 300 150 950 2,350 – 800 – 525 – 290 (i) + 1,300 + 1,300 Bal. 2,835 300 150 950 3,650 – 800 – 525 – 290 (j) – 120 – 120 Bal. 2,835 180 150 950 3,650 – 800 – 525 – 120 – 290 (k) – 400 – 400 Bal. 2,435 180 150 950 – 400 3,650 – 800 – 525 – 120 – 290 1-47 © 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.