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Accounting Principles 10th Edition Weygandt Kimmel Chapter 1 Solutions For Chapter 1 Accounting in Action
Accounting Principles 10th Edition Weygandt Kimmel Chapter 1 Solutions For Chapter 1 Accounting in Action
Assets = Liabilities +
Accounts Accounts
Cash Receivable Supplies Equipment Payable
1) $ 15,000
2) (7,000) 7,000
3) 1,600 1,600
4) 1,200
5) 250
6) 1,500 2,000
7) (1,700)
5, 8) (250) (250)
6, 9) 600 (600)
10) (1,300)
$ 18,050
Income Statement
month ending September 30, 2012
Revenues
Service Revenues $ 4,700
Expenses
Salaries & Wages Expense (900)
Rent Expense (600)
Advertising Expense (250)
Utilities Expense (200)
Total Expenses (1,950)
Investment by Owner
Drawings by Owners
cash at beginning of pe
cash at end of period
Chapter 1, Transaction Analysis & Financial Statements, pages 15 - 23
Owner's Equity
Owner's -Owner's
Capital Drawings Revenues -Expenses
$ 15,000 Initial Investment
Equipment on cash
Supplies on Credit
1,200 Service Revenue
(250) Advertising Expense
3,500 Service Revenue
(900) Salaries & Wage Expense
(600) Rent Expense
(200) Utilities Expense
(1,300)
Balance Sheet
month ending September 30, 2012
Assets
Cash $ 8,050
Accounts Receivable 1,400
Supplies 1,600
Equipment 7,000
Total Assets $ 18,050
Statement of CashFlows
month ending September 30, 2012
Transactions
1) $ 25,000 $ 25,000
2) 7,000 7,000
3) 8,000
4) (850)
5) (1,000)
Chapter 1, Transaction Analysis & Financial Statements, pages 21 Chapter 1, Transaction Analysis
Revenues Assets
Service Revenues $ 8,000 Cash
Accounts Receivable
Expenses Supplies
Salaries & Wages Expense - Equipment
Rent Expense (850) Total Assets
Advertising Expense -
Utilities Expense - Liabilities & Owner's Equity
Total Expenses (850) Liabilities
Accounts Payable
Net Income $ 7,150 Owner's Equity
Owner's Capital
Total Liabilities & Owner's Equit
Owner's Equity Statement
month ending August 31, 2012
Statement of CashFlows
Owner's Capital, September 1 0 month ending August 31, 2012
Add: Investments 25,000
Add: Net Income 7,150 Cash Flows from Operating Acti
32,150 cash receipts from revenues
Less: Drawings (1,000) cash payments for expenses
Owner's Capital, September 30 $ 31,150 Net Cash Provided by Operating
cash
equpment on credit
8,000 service provided
(850) rent expense
(1,000) cash withdrawal
Balance Sheet
month ending August 31, 2012
$ 31,150
Accounts Receivable -
-
7,000
Total Assets $ 38,150
Statement of CashFlows
month ending August 31, 2012
Transactions
Revenues
Service Revenues $ 36,000
Expenses
Assets
Cash $ 8,000
Accounts Receivable 9,000
Supplies -
Equipment 10,000
Total Assets $ 27,000
-
Liabilities & Owner's Equity
Liabilities
Accounts Payable $ 2,000
Note Payble 16,500
Owner's Equity $ 18,500
Owner's Capital 8,500
Total Liabilities & Owner's Equity $ 27,000
Assets = Liabilities +
Accounts Notes Accounts
Cash Receivable Supplies Equipment Payable Payable
1) $ 11,000
2) (800)
3) 3,000 3,000
4) 1,500
5) 700 700
6) 2,000
7) (500)
(300)
(100)
8 (1,000)
$ 15,500
Income Statement
month ending July 31, 2012
Revenues
Service Revenues $ 3,500
Expenses
Rent Expense (800)
Salaries & Wages Expense (500)
Utilities Expense (300)
Supplies Expense (100)
Total Expenses (1,700)
Net Income $ 1,800
Owner's Equity
Owner's -Owner's
Capital Drawings Revenues -Expenses
$ 11,000
(800) Rent Expense
Equipment on credit
1,500 Service Revenue
borrowed cash
2,000 Service Revenue
(500) expense
(300) expense
(100) expense
(1,000)
Balance Sheet
month ending July 31, 2012
Assets
Cash $ 10,500
Accounts Receivable 2,000
Supplies -
Equipment 3,000
Total Assets $ 15,500
Statement of CashFlows
month ending July 31, 2012
Assets = Liabilities +
Accounts Accounts
Cash Receivable Supplies Equipment Payable
1) $ 15,000
2) (2,000) 5,000 $3,000
3) (750) 750
4) 4,600 3,900
5) (1,500) (1,500)
6) (2,000)
7) (650)
8 450 (450)
9 (4,800)
10 500
$ 8,350 $ 3,450 $ 750 $ 5,000 $ 2,000
$ 17,550
Income Statement
month ending August 31, 2012
Revenues
Service Revenues $ 8,500
Expenses
rent Expense (650)
salary Expense (4,800)
utilities Expense (500)
Owner's Equity
Owner's -Owner's
Capital Drawings Revenues -Expenses
$ 15,000
supplies
8,500 Service Revenue
Balance Sheet
month ending August 31, 2012
Assets
Cash $ 8,350
Accounts Receivable 3,450
Supplies 750
Equipment 5,000
Total Assets $ 17,550
Statement of CashFlows
month ending August 31, 2012
1) $ 10,000 $ 10,000
2) (5,000) 5,000
3) (400)
4) (500) 500
5) 250
6) 6,100
7) (1,000)
8) (2,000)
9) (170)
10) 750
10,11) 120 (120)
Revenues Assets
Service Revenues $ 6,850 Cash
Accounts Receivable
Expenses Supplies
Salaries & Wages Expense (2,000) Equipment
Rent Expense (400) Total Assets
Advertising Expense (250)
Utilities Expense (170) Liabilities & Owner's Equit
Total Expenses (2,820) Liabilities
Accounts Payable
Net Income $ 4,030 Owner's Equity
Owner's Capital
Total Liabilities & Owner's
Owner's Equity Statement
month ending May 31, 2012
Statement of CashFlows
Owner's Capital, May 1 0 month ending May 31, 2012
Add: Investments $ 10,000
Add: Net Income $ 4,030 Cash Flows from Operating
$ 14,030 cash receipts from revenu
Less: Drawings $ (1,000) cash payments for expens
Owner's Capital, May 31 $ 13,030 Net Cash Provided by Oper
Owner's Equity
-Owner's
Drawings Revenues -Expenses
Initial Investment
Equipment cash
(400) Rent Expense cash
Supplies cash
(250) Advertising Expense on account
6,100 Service Revenue cash
(1,000) Owners Drawing
(2,000) Salaries & Wage Expense cash
(170) Utilities Expense cash
750 Service Revenue
received cash $120 from $750
Balance Sheet
month ending May 31, 2012
$ 7,150
Accounts Receivable 630
500
5,000
Total Assets $ 13,280
Liabilities & Owner's Equity
Statement of CashFlows
month ending May 31, 2012
Transactions
Instructions
(a) Prepare a tabular analysis of the transactions, using the
following column headings: Cash, Accounts Receivable,Supplies,
Equipment, Accounts Payable, Owner’s Capital, Owner’s Drawings,
Revenues, and Expenses
(b) From an analysis of the owner’s equity columns,
compute the net income or net loss for May.
Ans - Net income = $4030
Problem Set P1 - 1B
Chapter 1, Transaction Analysis & Financial Statements, page 41 Chapter 1, Transaction An
1) $ 15,000 $ 15,000
2) (600)
3) (3,000) 3,000
4) 700
5) (800) 800
6) 3,000 7,000
7) (500)
4, 8) (500) (500)
9) (2,500)
6, 10) 4,000 (4,000)
$ 14,100 $ 3,000 $ 800 $ 3,000 $ 200 $ 15,000
Revenues Assets
Service Revenues $ 10,000 Cash
Accounts Receivable
Expenses Supplies
Salaries & Wages Expense (2,500) Equipment
Rent Expense (600) Total Assets
Advertising Expense (700)
Liabilities & Owner's Equit
Total Expenses (3,800) Liabilities
Accounts Payable
Net Income $ 6,200 Owner's Equity
Owner's Capital
Total Liabilities & Owner's
Owner's Equity Statement
month ending April 30, 2012
Statement of CashFlows
Owner's Capital, April 1 0 month ending April 30, 2012
Add: Investments $ 15,000
Add: Net Income $ 6,200 Cash Flows from Operating
$ 21,200 cash receipts from revenu
Less: Drawings $ (500) cash payments for expens
Owner's Capital, April 1 $ 20,700 Net Cash Provided by Oper
Owner's Equity
-Owner's
Drawings Revenues -Expenses
Initial Investment
(600) Rent Expense cash
Equipment
(700) Advertising Expense on account
Supplies
10,000 Service Revenue cash+Credit
(500) Owners Drawing
Advertising expense
(2,500) Salaries & Wage Expense cash
Service Revenue
$ (500) $ 10,000 $ (3,800)
Balance Sheet
month ending April 30, 2012
Statement of CashFlows
month ending April 30, 2012
Transactions
P1-1B
P1-1B On April 1, Vince Morelli established Vince’s Travel Agency. The following transactions
were completed during the month.
1. Invested $15,000 cash to start the agency.
2. Paid $600 cash for April offi ce rent.
3. Purchased offi ce equipment for $3,000 cash.
4. Incurred $700 of advertising costs in the Chicago Tribune, on account.
5. Paid $800 cash for offi ce supplies.
6. Earned $10,000 for services rendered: $3,000 cash is received from customers, and the balance
of $7,000 is billed to customers on account.
7. Withdrew $500 cash for personal use.
8. Paid Chicago Tribune $500 of the amount due in transaction (4).
9. Paid employees’ salaries $2,500.
10. Received $4,000 in cash from customers who have previously been billed in transaction (6).
Instructions
(a) Prepare a tabular analysis of the transactions using the following column headings: Cash,
Accounts Receivable, Supplies, Equipment, Accounts Payable, Owner’s Capital, Owner’s
Drawings, Revenues, and Expenses.
(b) From an analysis of the owner’s equity columns, compute the net income or net loss for April.
dings: Cash,
Problem Set P1 -2A
Chapter 1, Transaction Analysis & Financial Statements, page 39
Assets = Liabilities
Accounts Notes Accounts
Cash Receivable Supplies Equipment Payable Payable
Balance 9,000 1,700 600 6,000 3,600
1) $ (2,900) $ (2,900)
2) 1,300 (1,300)
3) (800) 2,100 1,300
4) 2,500 5,300
5) (1,100)
6) (1,700)
(900)
(450)
7 170
8 10,000 10,000
$ 14,950 $ 5,700 $ 600 $ 8,100 $ 10,000 $ 2,170
Income Statement
month ending April 30, 2012
Revenues
Service Revenues $ 7,800
Expenses
Salaries & Wages Expense (1,700)
Rent Expense (900)
Advertising Expense (450)
Utilities expense (170)
Total Expenses (3,220)
Net Income $ 4,580
+ Owner's Equity
Owner's -Owner's
Capital Drawings Revenues -Expenses
13,700 Balance forward
Equipment
7,800 Service revenue
(1,100) Owners drawing
(1,700) Salaries
(900) Rent
(450) Advertising
(170) Utilities
Balance Sheet
month ending April 30, 2012
Assets
Cash $ 14,950
Accounts Receivable 5,700
Supplies 600
Equipment 8,100
Total Assets $ 29,350
Statement of CashFlows
month ending April 30, 2012
Transactions
P1-2A
P1-2A Ramona Castro opened a veterinary business in Nashville, Tennessee, on August 1. On
August 31, the balance sheet showed Cash $9,000, Accounts Receivable $1,700, Supplies $600,
Equipment $6,000, Accounts Payable $3,600, and Owner’s Capital $13,700. During September,
the following transactions occurred.