Individual Problems #1

Submitted on: July 13, 2014

Submitted by: Jenna Leigh
Chapter 1
Short Exercise 1-12
a) SRE, SCF
b) IS
c) BS
d) IS
e) BS, SRE
f) SCF
g) IS, SRE, SCF
h) SCF, BS
i) SCF
j) BS
k) BS
l) IS
m) BS
n) SCF

Exercise 1-17
1. Assets = Liabilities Owners Equity
Assets total: 633.6 + 1,126.7 + 1,237.5 = 2,997.8
Liabilities total: 591.2 + 1,245.2 = 1,836.4
Owners Equity: Assets Liabilities = 2,997.8 1836.4 = 1,161.4
Therefore, Maple Leafs accounting equation would be $2,997 million =
$1,836 million + $1161.4 million

2. 633.6 + 1,126.7 + 1,237.5 = 2,997.8

Therefore, Maple Leaf Foods has $2,997.8 million in resources to work with.
3. 591.2 + 1,245.2 = 1,836.4
Therefore, Maple Leaf Foods owes $1836.4 million to creditors.
4. 2,997.8 1836.4 = 1,161.4
Therefore, Maple Leaf Foods shareholders own $1161.4 million in assets.

Problem 1-45A
Link Ltd.

Chain Inc.

Fence Corp.

Beginning
Retained
Earnings

$25 million

$10 million

$3 million

Net Income

$5 million

$9 million

$1 million

Cash
Dividends

-$3 million

-$2 million

$0

Ending
Retained
Earnings

$27 million

$17 million

$4 million

Calculations:
Link Ltd:
Beginning retained earnings = 78-47-6 = 25
Net income = 216-211 5
Ending retained earnings = 25+5-3 =27
All other data given.

Chain Inc:
Ending retained earnings = 10+9-2 = 17
All other data given.

Fence Corp.
Ending retaining earnings = 3+1-0 = 4
All other data given.

1. Chain Inc. had the highest net income at the end of the year.
2. Link Ltd: 5/216 x 100% = 2.3%
Chain Inc: 9/153 x 100% = 5.9%
Fence Corp: 1/20 x 100% = 5%
Therefore, Chain Inc. had the highest percentage of net income to revenues
at 5.9%.

Chapter 2
Short Exercise 2-5

June 15

June 22

June 28

June 29

June 30

Exercise 2-16

Accounts and
Explanation

Debit

Cash
Note Payable
Borrowed cash on
note payable

$25,000

Accounts Receivable
Service Revenue
Performed services
on account

$9,000

Cash
Accounts
Receivable
Received on account

$5,000

Utilities Expense
Accounts Payable
Received utility bill

$600

Salary Expense
Cash
Paid salary expense

$2,500

Credit

$25,000

$9,000

$5,000

$6000

$2,500

1.
Assets

Liabilities + Shareholders

Equity
Type of
Shareholders
Equity Trans.
Cash

+
$50,00
0

$30,00
0

+ Land

+
Dental
Suppli
es

+
Accounts
Receivab
le

+
Common
Shares

+
Retaine
d
Earning
s
Issued Shares

+
$30,00
0
+
$3,00
0

+
$5,000

+
Notes
Payable

+
$50,000

Accoun
ts
Payabl
e

+
$3,000
+ $5,000

+
$10,000

Service
Revenue

-$1400

-$1400

-$1000

-$1000

Salary
Expense

-$300

-$300

Rent Expense
Utilities
Expense

+
$10,00
0

-$2000

Bal.

$30,30
0

+
$10,00
0
-$2000
$30,00
0

$3,00
0

$68,300

$5,000

$1,000

$10,00
0

$50,000

$68,300

$7,300

2.
a) $30,300 + $30,000 + $3,000 + $5,000
Total assets are $68,300
b) The business expects to collect $5,000 from patients.
c) $10,000 + $1,000
The business owes $11,000 in total.
d) Ohara actually owns $57,300 worth of assets.
e) $10,0000 - $2,700 ($1400+$1000+$300) = $7,300
The net income for the month was $7,300.

Problem 2-54A
1. Date

Accounts

Debit

May 2

Cash
Common Shares

$30,000

Supplies
Equipment
Accounts
Payable

$1,000
$2,600

Cash
Service
Revenue

$1,500

Land
Cash

$22,000

Accounts
Receivable
Service
Revenue

$500

Accounts Payable
Cash

$2,600

Utilities Expense
Cash

$95

May 3

May 4

May 7
May 11

May 16
May 17

Credit
$30,000

$3,600

$1,500

$22,000
$500

$2,600
$95

May 18

May 22
May 29

May 31
May 31

Cash
Accounts
Receivable

$250

Utilities Expense
Cash

$400

Cash
Service
Revenue

$2,000

Salary Expense
Cash

$1,300

Dividends
Cash

$1,500

$250

$400
$2,000

$1,300
$1,500

2.
Cash
(May 2) $30,000

(May 7) $22,000

(May 4) $1,500

(May 16) $2,600

(May 18) $250

(May 17) $95

(May 29) $2,000

(May 22) $400

(May 31) $1,300
(May 31) $1,500

Bal. $5,855

Accounts Receivable
(May 11) $500

(May 18) $250

Bal. $250

Supplies
(May 3) $1,000
Bal. $1,000

Equipment
(May 3) $2,600
Bal. $2,600

Land
(May 7) $22,000
Bal. $22,000
Accounts Payable
May 16) $2,600

(May 3) $3,600
Bal. $1,000

Common Shares
(May 2) $30,00
Bal. $30,000

Dividends
(May 31) $1.500
Bal. $1,500

Service Revenue
(May 4) $1,500
(May 11) $500
(May 29) $2,000
Bal. $4,000

Salary Expenses

(May 31) $1,300

Bal. $1,300

Utilities Expense
(May 17) $95
(May 22) $400
Bal. $495

3.
New Pane Windows Inc.
Trial Balance
May 31, 2011
Balance
Account Title

Debit

Cash

$5,855

Accounts Receivable

250

Supplies

1,000

Equipment

2,600

Land

22,000

Credit

Accounts Payable

$1,000

Common Shares

30,000

Dividends

1,500

Service Revenue
Salary Expense

4000
1,300

Utilities Expense

495

Total

$35,000

$35,000

4.
Assets:
$5,855
250
1,000
2,600
22,000
Total = 31,705

Therefore, New Pane Windows Inc, has $31,705 in resources to work with.

Liabilities:
New Pane Windows Inc. owes $1,000 (accounts payable only).

Net Income/Loss:
$4000 - $1,795 ($1300+$495) = $2205
New Pane Windows Inc. experienced a profit in their first month of operations,
ending May 2011. They made a profit of $2,205.