FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Question
Chapter 1, Problem 8PSA
To determine
The assets, liabilities and equity relation, are known as the accounting equation. Assets are the resources of company and that increase as business expand whereas liabilities are the burden on company that has to pay in future; Equity means the owner claim on assets. An accounting equation represent the assets of the company are equal to the liabilities and equity of the company.
In can be represented as follow,
Net Income:
Total earning of the company is called net income of the company. When the total expense deducted from the total revenue than the resultant is net income or net loss.Net profit of the company is also called net profit. The investor can take a decision on the basis of net income of the company. If net income is more the investor attract to the company.
1.
To identify: The effect of transactions on the accounting equation.
2.
To determine
The net income of the company.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
TB 02-65 A company receives $10 million cash from inv.
A company receives $10 million cash from investors in exchange for new common stock. Several weeks later, the company buys a $25 million machinery using all of the cash from the stock issue and signing a promissory note for the remainder. The accounts involved in these two transactions are:
Multiple Choice
Contributed Capital; Cash; Equipment; and Notes Payable.
Shareholders' Equity; Cash; Long-term Investments; and Notes Payable.
Retained Earnings; Equipment; and Notes Payable.
Long-term Investments; Cash; Equipment; and Accounts Payable
Q1 Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January, 2021 and invests cash of RO. 20,000 as his capital.
Amir Enterprise’s purchases machinery worth RO. 1,000 paid 35% in cash and remaining on credit.
The company purchased goods worth RO. 5,000. Paid RO. 2,000 cash and balance on credit
The company made a sale of RO. 2800 (cost being RO 3000) on credit basis
The company took loan of RO. 10,000 from Bank Muscat .
Mr. Amir withdrew RO. 1,000 from the business for his personal use
You need to record the above transactions in an equation form.
Q2Select any five financial transactions of your choice and make journal entries for the same.
Problem 10. Virginia Yacapi, opens a servicing business and capital of P500,000. At the end of the year, the creditor's claims
is P175,000 and the owner's is 75% of the total assets. How much is the total assets at the end of the year.
Part 3
Financal Worlschest Analucic
Chapter 1 Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - If the assets of a company increase by $100,000...Ch. 1 - Brunswick borrows $50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Prob. 2DQCh. 1 - Identify four kinds of external users and describe...Ch. 1 - Prob. 4DQCh. 1 - Prob. 5DQ
Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Prob. 16DQCh. 1 - Prob. 17DQCh. 1 - Prob. 18DQCh. 1 - Prob. 19DQCh. 1 - Prob. 20DQCh. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Prob. 24DQCh. 1 - Prob. 25DQCh. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Prob. 28DQCh. 1 - Prob. 29DQCh. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - Prob. 33DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Prob. 7QSCh. 1 - Prob. 8QSCh. 1 - Prob. 9QSCh. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Identifying items with financial statements P2...Ch. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Computing and interpreting return on assets A2 In...Ch. 1 - Prob. 17QSCh. 1 - Prob. 1ECh. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Prob. 8ECh. 1 - Prob. 9ECh. 1 - Prob. 10ECh. 1 - Identifying effects of transactions on the...Ch. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Using the accounting equation A1 Answer the...Ch. 1 - Prob. 1PSACh. 1 - Prob. 2PSACh. 1 - Prob. 3PSACh. 1 - Prob. 4PSACh. 1 - Prob. 5PSACh. 1 - Prob. 6PSACh. 1 - Prob. 7PSACh. 1 - Prob. 8PSACh. 1 - Prob. 9PSACh. 1 - Prob. 10PSACh. 1 - Prob. 11PSACh. 1 - Prob. 12PSACh. 1 - Prob. 13PSACh. 1 - Prob. 14PSACh. 1 - Identifying effects of transactions on financial...Ch. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Analyzing transactions and preparing financial...Ch. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1AACh. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 5BTN
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Problem 8-20A (Algo) Effect of business structure on financial statements LO 8-1 [The following information applies to the questions displayed below.] Cascade Company was started on January 1, Year 1, when it acquired $167,000 cash from the owners. During Year 1, the company earned cash revenues of $94,600 and incurred cash expenses of $66,500. The company also paid cash distributions of $13,000. Required Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.) Problem 8-20A (Algo) Part c Cascade is a corporation. It issued 10,000 shares of $10 par common stock for $167,000 cash to start the business.arrow_forward26 Fireside, Incorporated uses accrual basis accounting. Its balance sheets reported Accounts Receivable of $12,000 at the end of its first year and $18,000 at the end of its second year. Its income statement reported Sales Revenue of $120,000 in its second year. What would Fireside's revenues have been if it had used cash basis accounting? Multiple Choice $120,000 $114,000 $126,000 $12,000arrow_forward30: Accounts Payable Factory Building Cash Contributed Capital Equipment Transaction $ 21,000 103,300 29,300 191,000 129,000 During the month of July, the company had the following transactions: a Issued 3,780 shares for $378,000 cash. b. Borrowed $112,000 cash from a local bank, payable in two years. c. Bought a factory building for $204,000; paid $93,000 in cash and signed a three-year note for the balance. d. Paid cash for equipment that cost $222,000 e. Purchased supplies for $33,300 on account. a b C Required: 1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign.) d Land Notes Payable (long-term) Retained Earnings Supplies $ 211,000 4,200 264,500 8,100 Assets Liabilities Shareholders' Equityarrow_forward
- Analyze Deere & Company Deere & Company (DE) manufactures and distributes farm and construction machinery that it sells around the world. In addition to its manufacturing operations, Deere's credit division loans money to customers to finance the purchase of their farm and construction equipment. The following information is available for three recent years (in millions except per-share amounts): Year 3 Year 2 Year 1 Net income (loss) $1,523.9 $1,940.0 $3,161.7 Preferred dividends $ 0.00 $ 763.7 $ 680.0 $ 664.0 $ 0.00 $0.00 Interest expense Shares outstanding for computing earnings per share 315 334 363 Cash dividend per share $ 2.40 $ 2.40 $ 2.22 $ 57,965 $ 59,642 $ 60,429 $ 6,644 $ 7,912 $ 9,667 $ 92.03 $ 81.10 $ 85.58 Average total assets Average stockholders' equity Average stock price per share 1. Calculate the following ratios for each year (Round ratios and percentages to one decimal place, except for per-share amounts. Round per-share amounts to two decimal places.): Year 3…arrow_forwardRevenue Per Employee Schwartz and Beer, CPAs earned $11,737,500 during 20Y4 using 75 employees. During 20Y5, the firm grew revenues to $13,567,500 and expanded the staff to 81 employees. a. Determine the revenue per employee for each year. Line Item Description Amount Line Item Description Revenue Per Employee 20Y4 fill in the blank 1 of 2$ 20Y5 fill in the blank 2 of 2$ b. The growth in revenue was fill in the blank 1 of 2 the growth in the number of employees; thus, the revenue per employee fill in the blank 2 of 2 between the two years.arrow_forwardQ3 James Collier left his job at a large corporation where he had worked as a senior accountant. He was getting $82000 as yearly salary. He established his own J.C. Accounting firm. J.C. Accounting earned total revenue $680000 in first year. The material cost was $49000; costs for rented equipment were $30000, salary given to the security man was $18800 and wages given to workers were $158229 in a year. The interest forgone for the invested funds was $22000 per year. James Collier estimated his entrepreneurial talent was worth $19850 per year. He was also offered $26985 per year to train employees in another firm. Two students assist him managing his account books for which they are paid $6550 each per year. Find accounting profits and economic profits for J.C. Accounting firm. Should James Collier stay in his business? Why? Explicit costs = Implicit costs = Economic costs = Accounting…arrow_forward
- 7 The accounts payable balance at the beginning of the year was $85,000. The company purchased $380,000 worth of goods on account, and the ending balance of the payables account was $70,000. What were the total payments on account? Multiple Choice $450,000 $395,000 $535,000 $465,000arrow_forward20:48:04 Answer the following questions. Hint: Use the accounting equation. 4 a. On January 1, Lumia Company's liabilities are $75,000 and its equity is $55,000. On January 3, Lumia purchases and installs solar panel assets costing $25,000. For the panels, Lumia pays $11,500 cash and promises to pay the remaining $13,500 in six months. What is the total of Lumia's assets after the solar panel purchase? Complete this question by entering your answers in the tabs below. Required A Required B Required C b. On March 1, ABX Company's assets are $115,000 and its liabilities are $45,000. On March 5, ABX is fined $22,500 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX? c. On August 1, Lola Company's assets are $45,000 and its liabilities are $25,000. On August 4, Lola issues a sustainability report. On August 5, ownership invests $10,500 cash and $14,500 of equipment in Lola. After the investment, what is the…arrow_forwardQuestion: Q1 Let Us Assume That Mr. Amir Starts A Business Called Amir Enterprises On 1st January,... QI Let us assume that Mr. Amir starts a business called Amir Enterprises on 1st January, 2021 and invests cash of RO. 20,000 as his capital. Amir Enterprise's purchases machinery worth RO. 1,000 paid 35% in cash and remaining on credit. The company purchased goods worth RO. 5,000. Paid RO. 2,000 cash and balance on credit The company made a sale of RO. 2800 (cost being RO 3000) on credit basis The company took loan of RO. 10,000 from Bank Muscat. Mr. Amir withdrew RO. 1,000 from the business for his personal use You need to record the above transactions in an equation form.arrow_forward
- Question one Fantastic Corporation is a corporation that owns and operates a public accounting practice. The business transactions during September, 2020 while the new venture was being organized are listed below: Sept. 1 The Corporation issued 20,000 shares of capital stock to Elizabeth Carver in exchange for her investment of Birr 50,000 cash which she had saved over a period of years. Sept. 10 purchased a small office building located on a large lot for a total price of Birr 182,000, of which Birr 106,000 was applicable to the land and Birr76, 000 to the building. A cash payment of Birr 36,500 was made and a note payable was issued for the balance of the purchase price. Sept. 15 purchased a microcomputer system from Computer Stores Inc., for Birr 1,680 cash. Sept. 19 Purchased office furniture, filing cabinets and a typewriter from Davidson Office Supply Company at a cost of Birr 3,960. A cash down payment of Birr 720 was made, the balance to be paid in three equal installments due…arrow_forwardProblem B Peter Senen Corporation provided the following account balances as of September 30, 2020: Cash P112,000 Accumulated depreciation P 36,000 Accounts Receivable 64,000 Accounts payable 40,000 Finished Goods 48,000 Income tax payable 9,000 Work in process 36,000 Share Capital 500,000 Raw materials 52,000 Retained Earnings 207,000 Property and Equipment 480,000 The following transactions occurred during October: Materials purchased on account, P150,000 Materials issued to production: direct materials- P90,000, Indirect materials- P10,000. Payroll for the month of October 2020 consisted of the following (also paid during the month): Direct labor P62,000…arrow_forwardProblem 1 On 2 May 2022, Elon Musk began a new business, called Space W Inc., company producing food in pills by transforming the air and plants, with the idea of delivering low cost food to all the world citizens. The following transactions were completed by the business during May: 2 May Issued to Elon 1,000 shares of capital stock in exchange for his investment of 5,120,000€ cash. 3 May Purchased land and a building for 1,530,000€ paying 800,000 cash and signing a note payable for the balance. The interest rate for the Note payable is 3% on annual terms, and it will be paid at maturity which will be may 3rd 2024. The land was considered to be worth 630,000€ and the building the remaining amount. 4 May Purchased robots for 4,000,000€ in order to be prepared for the production, and paid cash. 5 May Sold pills for 500,000€ to be paid at the end of the month to the customer Prometeus. 31 May Collected the Accounts Receivable in full. The account…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education
The ACCOUNTING EQUATION For BEGINNERS; Author: Accounting Stuff;https://www.youtube.com/watch?v=56xscQ4viWE;License: Standard Youtube License