Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 6E
Exercise 1-6 Effect of transactions on general ledger accounts
At the beginning of 2018, Better Corp.’s accounting records had the following general ledger accounts and balances:
Better Corp. completed the following transactions during 2018:
1. Purchased land for $5,000 cash.
2. Acquired $25,000 cash from the issue of common stock.
3. Received $75,000 cash for providing services to customers.
4. Paid cash operating expenses of $42,000.
5. Borrowed $10,000 cash from the bank.
6. Paid a $5,000 cash dividend to the stockholders.
7. Determined that the market value of the land purchased in event 1 is $35,000.
Required
a. Record the transactions in the appropriate general ledger accounts. Record the amounts of revenue, expense, and dividends in the
b. As of December 31, 2018, determine the total amount of assets, liabilities, and stockholders’ equity and present this information in the form of an
c. What is the amount of total assets, liabilities, and stockholders’ equity as of January 1, 2019?
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Illustration:
ABC Co.'s cash balance on January 1 2018 was P 20 000 The following were the transactions
that affected cash during the period
a. Collections from customers for the sale of goods,
b. Cash receipt from loan obtained from a bank,
c. Cash receipt from additional investment by owner,
d. Payments to suppliers for the purchase of inventory,
e. Payments for employee salaries,
f. Payments for rent expenses,
g. Payment for utilities expense,
h. Payment for the acquisition of equipment,
i. Cash disbursements for drawings by owner,
Required: Prepare the statement of cash flows
from operating activities
Please be guided by the rubric below:
ACTIVITY No.
RE
20
16
12
8
P 580 000
P 180 000
P 20 000
P 120 000
P 140 000
70 000
P
P 20 000
P 200 000
P 60 000
the direct method of presenting cash flows
DESCRIPTION
The financial position is presented properly, and the
amounts are correct
The financial position is presented properly, and the
amounts have few errors
The financial position is…
Question 1:
Following amounts have been Extracted from the records of Monday Limited.
Description
2019
2018
- Rs. In 000-
Sales
32,875
31,390
Gross profit
16,880
14,310
Profit for the year
3,300
2,700
Account receivable
3,860
2,510
Account payable
4,660
2,890
Inventory
430
445
Cash at bank
12
37
Bank overdraft
280
40
Monday Limited secured a large new contract to supply goods to a large departmental store across a two year
period from 1st July 2019. Monday Limited normally offers wholesale customers 30 days’ credit, but department store would only agree to the contract with 90 days credit terms. The directors of Monday Limited agreed to this as they believed it was worth it to have their products placed with this department store. Monday Limited has an average 45 day credit from its suppliers. The bank overdraft is used to fund working capital and currently has a limit of Rs.300,000.…
1. Prepare a Classified Statement of Assets & Liabilities
as at 30th June 2023
Cash receipts and payments for the year ended 30th
June 2023:
Cash
Receipts:
Subscriptions 11,000
Bar sales
Hire of
function
room
$
Bank
Bar inventory
30,000
5,300
Assets & Liabilities as at
$46,300
Subscription in arrears
Subscription in advance
Bar equipment - at cost
Accumulated depreciation
bar equipment
Bank Loan (Due 30/6/17)
Accounts payable (bar)
Accrued bar wages
Prepaid rent expense
Cash
Payments:
Bar purchases 12,000
Payments to
accounts
payable
Telephone
Insurance
Cleaner's
wages
Electricity
Bar wages
Bank Loan
interest
Rent paid
1 July
2022
15,000
2,600
220
800
35,000
5,000
16,000
1,000
O
0
$
?
6,000
900
1,200
1,500
800
5,000
2,900
10,000
$40,300
30 June
2023
2,400
880
270
35,000
6,000
16,000
2,000
100
500
Chapter 1 Solutions
Survey Of Accounting
Ch. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3QCh. 1 - 4. In a business context, what does the term...Ch. 1 - 5. What market trilogy components are involved in...Ch. 1 - 6. Give an example of a financial resource, a...Ch. 1 - Prob. 7QCh. 1 - 8. How do financial and managerial accounting...Ch. 1 - Prob. 9QCh. 1 - Prob. 10Q
Ch. 1 - Prob. 11QCh. 1 - 12. Distinguish between elements of financial...Ch. 1 - Prob. 13QCh. 1 - 14. To whom do the assets of a business belong?Ch. 1 - 15. Describe the differences between creditors and...Ch. 1 - Prob. 16QCh. 1 - Prob. 17QCh. 1 - Prob. 18QCh. 1 - 19. What does a double-entry bookkeeping system...Ch. 1 - 22. How does acquiring capital from owners affect...Ch. 1 - Prob. 21QCh. 1 - Prob. 22QCh. 1 - 25. What are the three primary sources of assets?Ch. 1 - 26. What is the source of retained earnings?Ch. 1 - 27. How does distributing assets (paying...Ch. 1 - 28. What are the similarities and differences...Ch. 1 - Prob. 27QCh. 1 - 30. Which of the general-purpose financial...Ch. 1 - 31. What causes a net loss?Ch. 1 - 35. What three categories of cash receipts and...Ch. 1 - Prob. 31QCh. 1 - 37. Discuss the term articulation as it relates to...Ch. 1 - 38. How do temporary accounts differ from...Ch. 1 - Prob. 34QCh. 1 - 41. Identify the three types of accounting...Ch. 1 - Prob. 36QCh. 1 - Prob. 37QCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Exercise 1-3A Identifying the reporting entities...Ch. 1 - Exercise 1-4A Define Terms and Identify Missing...Ch. 1 - Exercise 1-5 Effect of events on the accounting...Ch. 1 - Exercise 1-6 Effect of transactions on general...Ch. 1 - Exercise 1-7 Missing information and recording...Ch. 1 - Prob. 8ECh. 1 - Exercise 1-9A Record events and interpret...Ch. 1 - Exercise 1-10 Interpreting the accounting equation...Ch. 1 - Prob. 11ECh. 1 - Exercise 1-12A Differences between interest and...Ch. 1 - Exercise 1-13A Classifying events as asset source,...Ch. 1 - Prob. 14ECh. 1 - Exercise 1-15 Preparing an income statement and a...Ch. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Riley Company paid 60,000 cash to purchase land...Ch. 1 - Prob. 21ECh. 1 - As of January 1, 2018, Room Designs, Inc. had a...Ch. 1 - As of December 31, 2018, Flowers Company had total...Ch. 1 - Prob. 24ECh. 1 - Critz Company was started on January 1, 2018....Ch. 1 - The Candle Shop experienced the following events...Ch. 1 - Prob. 27ECh. 1 - Prob. 28PCh. 1 - Prob. 29PCh. 1 - Match the terms (identified as a through r) with...Ch. 1 - Problem 1-30A Classifying events as asset source,...Ch. 1 - Problem 1-31A Relating titles and accounts to...Ch. 1 - Marks Consulting experienced the following...Ch. 1 - Prat Corp. started the 2018 accounting period with...Ch. 1 - Maben Company was started on January 1, 2018, and...Ch. 1 - Required Use the Target Corporations Form 10-K to...Ch. 1 - ATC 1-5 Writing Assignment Elements of financial...
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