Loose Leaf for Fundamental Accounting Principles
Loose Leaf for Fundamental Accounting Principles
23rd Edition
ISBN: 9781259687709
Author: John J Wild, Ken Shaw Accounting Professor, Barbara Chiappetta Fundamental Accounting Principles
Publisher: McGraw-Hill Education
Question
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Chapter 1, Problem 9BPSB
To determine

Concept Introduction:

Financial Statements: Financial statements are reports of the financial condition of a company or entity. In the financial statements, the management presents the financial performance and position of the company at a point in time. Financial statements disclose the financial effects of business transactions. Financial statements include a balance sheet, income statement, statement of cash flows and statement of change in equity.

Balance Sheet: The balance sheet provides details of the firm’s assets, liabilities and owner’s equity for a given date. The balance sheet gives a snapshot of what the company owns and owes as well as the amount invested in equity. The balance sheet follows the below rule

Assets = Liabilities + Equity

Income Statement: It is also called the profit & loss statement. Income statement provides a snapshot of revenue, expenses and net income of the organization for a given period.

Statement of Cash Flows: It is a financial statement that shows the movements of cash and Bank balance during a period. It describes the amount of cash generated by a company during a period and the use of the cash.

Statement of change in equity: It is a financial statement that shows the movements of the equity capital during a period.

1.

To prepare: A table in the required format for the given data

Expert Solution
Check Mark

Explanation of Solution

The required table for the given data is prepared as below

 
  Assets   Liabilities + Equity
Date Cash + Accounts Receivable + Office Supplies + Office equipment + Roofig equipment = Account Payable + R.Rivra Capital - R.Rivera withdrawals + Revenues - Expenses
1 80,000                       80,000            
2 -700                                   -700
3 -1000               5,000   4,000                
6 -600       600                            
8 7,600                               7,600    
10             2,300       2,300                
15     8,200                           8,200    
17         3,100           3,100                
23 -2,300                   -2,300                
25     5,000                           5,000    
28 8,200   -8,200                                
30 -1,560                                   -1,560
31 -295                                   -295
31 -1,800                           -1,800        
  87,545 + 5,000 + 3,700 + 2,300 + 5,000 = 7,100 + 80,000 - -1,800 + 20,800 - -2,555

2.

To determine

To Prepare: The income statement, statement of owner’s equity and the balance sheet from the given data.

Expert Solution
Check Mark

Explanation of Solution

The income statement for Rivera Roofing Co for July month is as below:

Rivera Roofing Co
Income Statement for the month July
  Details   Amount in S
  Revenue    
  Income from services   $20,800
       
  Expenses    
  Rent expenses 700  
  Salary expenses 1,560  
  Utilities expenses 295 2,555
       
  Net income   $18,245

The statement of owner’s equity for Rivera Roofing Co is as below:

Rivera Roofing Co
Statement of owner’s equity for the month of July
  Details Amount in S
  Opening equity 0
  Add: Equity introduced in form of cash 80,000
  Add: Net income for the year 18,245
  Less: Cash withdrawals -1,800
     
  Closing equity as on July 31 $96,445

The balance sheet as of July 31 is as below;

Rivera Roofing Company
Balance Sheet as on July 31
  Details Amount in S
  Liabilities  
  Equity $96,445
  Account payable $7,100
  Total $103,545
     
  Assets  
  Cash $87,545
  Account receivable $5,000
  Office Equipments $2,300
  Office Supplies $3,700
  Total $103,545

3.

To determine

To Prepare: A statement of cash flows for the month of July.

Expert Solution
Check Mark

Explanation of Solution

The statement of cash flows for the month of July is prepared as below.

Rivera Roofing Company
Statement of Cash flow for the month of July
      Amount in S
  Opening cash balance   0
  Cash flow from operating activities    
  Rent paid in cash -700  
  Revenue received in cash 7,600  
  Cash received from customer 8,200  
  Salary paid in cash -1,560  
  Utilities expenses paid in cash -295 13,245
       
  Cash flow from financing activities    
  Cash paid to supplier of equipment -1,000  
  Cash paid to supplier of office supplies -600  
  Cash paid to supplier of equipment -2,300 -3,900
       
  Cash flow from investing activities    
  Cash received from Owner 80,000  
  Cash withdrawals by owner -1,800 78,200
       
  Cash Balance as on July 31   87,545

4.

To determine

To Compute: The dollar effect of the given assumption on the month end amount for

a) Total assets

b) Total liabilities

c) Total equity.

Expert Solution
Check Mark

Explanation of Solution

The dollar effect of given assumption on month end is as below

a) Total assets: Total asset increased by $1,000.

b) Total liabilities: Total liabilities decreased by $4,000.

c) Total equity: Total equity increased by $1,000

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Chapter 1 Solutions

Loose Leaf for Fundamental Accounting Principles

Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - Prob. 13DQCh. 1 - Prob. 14DQCh. 1 - Prob. 15DQCh. 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 - Define and explain return on assets.Ch. 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 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 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 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Prob. 13ECh. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Exercise 1–16 Preparing a statement of owner’s...Ch. 1 - Prob. 17ECh. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 1 - Prob. 22ECh. 1 - Prob. 1APSACh. 1 - Prob. 2APSACh. 1 - Prob. 3APSACh. 1 - Prob. 4APSACh. 1 - Prob. 5APSACh. 1 - Prob. 6APSACh. 1 - Prob. 7APSACh. 1 - Prob. 8APSACh. 1 - Prob. 9APSACh. 1 - Prob. 10APSACh. 1 - Prob. 11APSACh. 1 - Problem 1–12AA Identifying risk and...Ch. 1 - Prob. 13APSACh. 1 - Prob. 14APSACh. 1 - Prob. 1BPSBCh. 1 - Prob. 2BPSBCh. 1 - Prob. 3BPSBCh. 1 - Prob. 4BPSBCh. 1 - Prob. 5BPSBCh. 1 - Prob. 6BPSBCh. 1 - Prob. 7BPSBCh. 1 - Prob. 8BPSBCh. 1 - Prob. 9BPSBCh. 1 - Prob. 10BPSBCh. 1 - Prob. 11BPSBCh. 1 - Prob. 12BPSBCh. 1 - Prob. 13BPSBCh. 1 - Prob. 14BPSBCh. 1 - Prob. 1SPCh. 1 - Prob. 1BTNCh. 1 - Prob. 2BTNCh. 1 - Prob. 3BTNCh. 1 - Prob. 4BTNCh. 1 - Prob. 5BTNCh. 1 - Prob. 6BTNCh. 1 - Prob. 7BTNCh. 1 - Prob. 8BTNCh. 1 - Prob. 9BTN
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