Financial & Managerial Accounting 14th Ed. W/ PAC LMS Intg CNOWv2 2S
14th Edition
ISBN: 9781337591027
Author: WARREN, Reeve, Duchac
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.25EX
Financial statements
We-Sell Realty, organized as a corporation on August 1, 2018, is owned and operated by Omar Farah, the sole stockholder. How many errors can you find in the following statements for We-Sell Realty, prepared after its first month of operations?
| We-Sell Realty Income Statement August 31, 2018 | ||
| Sales commissions | $140,000 | |
| Expenses: | ||
| Office salaries expense | $87,000 | |
| Rent expense | 18,000 | |
| Automobile expense | 7,500 | |
| Miscellaneous expense | 2,200 | |
| Supplies expense | 1,150 | |
| Total expenses | 115,850 | |
| Net income | $25,000 |
| Omar Farah |
||
| Retained earnings, August 1,2018 | $0 | |
| Dividends | (10,000) | |
| $(10,000) | ||
| Issued additional common stock August 1,2018 | 15,000 | |
| $5,000 | ||
| Net income | 25,000 | |
| Retained earnings, August 31, 2018 | $30,000 |
| Cash | Assets | $8,900 | ||
| Accounts payable | 22,350 | |||
| Total assets | $31,250 | |||
| Liabilities | ||||
| $38,600 | ||||
| Supplies | 4,000 |
| Stockholders’ Equity | ||
| Retained earnings | 30,000 | |
| Total liabilities and stockholders’ equity | $72,600 |
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The records of a domestic corporation organized in 2010 show:
2016 2017 2018 2019
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Recovery of bad debts written off:
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E (Click the icon to view the financial statements.)
The company has 2,200 shares of common stock outstanding. What is Atlantic's earnings per share? (Round the earnings per share to two decimal places, X.XX.
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O B. $3.58
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O D. 3.19 times
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Comparative Balance Sheet
December 31, 2019 and 2018
2019
2018
Assets
Current Assets:
Cash and Cash Equivalents
2,052 $
1,655
Accounts Receivable
1,951
1,731
Merchandise Inventory
1,342
1,094
1,615
1,817
Prepaid Expenses
Total Current Assets
6,960
6,297
18,240
16,174
Other Assets
2$
25,200 $
22,471
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Liabilities
Current Liabilities
24
7.087 $
8,158
4,698
3,844
Long-term Liabilities
Total Liabilities
11,785
12,002
Stockholders' Equity
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7,015
4,169
6,400
6,300
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Click to select your an
Total Stockholders' Equity
13,415
10,469
24
25,200 $
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Clear Al
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Total…
The following data were taken from the balance sheet accounts of Blossom Corporation on December 31, 2019.
Current assets
$554,000
Debt investments (trading)
596,000
Common stock (par value $10).
455,000
Paid-in capital in excess of par
148,000
Retained earnings
800,000
Prepare the required journal entries for the following unrelated items. (Credit account titles are automatically indented when
no entry is required, select "No Entry" for the account titles and enter 0 for the
amount is entered. Do not indent manually.
amounts.)
(a)
A 4% stock dividend is (1) declared and (2) distributed at a time when the market price per share is $37.
(b)
The par value of the common stock is reduced to $2 with a 5-for-1 stock split.
(c)
A dividend is declared January 5, 2020, and paid January 25, 2020, in bonds held as an investment. The bonds have a book
value of $105,000 and a fair value of $133,000.
Chapter 1 Solutions
Financial & Managerial Accounting 14th Ed. W/ PAC LMS Intg CNOWv2 2S
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - A business had revenues of 679,000 and operating...Ch. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. What...
Ch. 1 - Prob. 1.1BECh. 1 - Prob. 1.2BECh. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.5BECh. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Types of businesses The following is a list of...Ch. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Accounting equation The total assets and total...Ch. 1 - Prob. 1.5EXCh. 1 - Accounting equation Determine the missing amount...Ch. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Effect of transactions on stockholders equity...Ch. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Income statement Imaging Services was organized on...Ch. 1 - Missing amounts from balance sheet and income...Ch. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Statement of cash flows Indicate whether each of...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1ADMCh. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Prob. 4ADMCh. 1 - Ethics in Action Marco Brolo is one of three...Ch. 1 - Prob. 1.3TIF
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