Financial and Managerial Accounting (Looseleaf) (Custom Package)
Financial and Managerial Accounting (Looseleaf) (Custom Package)
6th Edition
ISBN: 9781259754883
Author: Wild
Publisher: MCG
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Chapter 1, Problem 9PSB

1.

To determine

To prepare:

The table showing accounts given related to assets, liabilities, and equity.

1.

Expert Solution
Check Mark

Explanation of Solution

Show the classification of the accounts under assets, liabilities, and equity as follow:

Financial and Managerial Accounting (Looseleaf) (Custom Package), Chapter 1, Problem 9PSB , additional homework tip  1

Table (1)

Hence, Cash, Accounts receivable, Office Supplies, Office Equipment, and Roofing Equipment accounts will come under assets, Accounts Payable and Notes Payable accounts will be treated as liability and the Common Stock, Dividends, Revenue and Expenses accounts will come under equity.

2.

To determine

To identify:

The effect of transactions on the accounting equation.

2.

Expert Solution
Check Mark

Explanation of Solution

Show the effect of transactions as follow:

Financial and Managerial Accounting (Looseleaf) (Custom Package), Chapter 1, Problem 9PSB , additional homework tip  2

Table (2)

Hence, the cash balance is $87,545,accounts receivables is $5,000, office supplies is $3,700, office equipment is $2,300, roofing equipment is $5,000, accounts payable is $7,100, common stock is $80,000, dividend is $1,800, revenue is $20,800 and expenses is $2,555.

3.

To determine

To prepare:

The income statement, statement of retained earnings, statement of cash flows and balance sheet for the month of July 31, 20XX.

3.

Expert Solution
Check Mark

Explanation of Solution

Prepare income statement.

R Company
Income Statement
For the Month Ended July 31, 20XX
Particulars Amount
($)
Amount
($)
Revenue:    
Service Revenue 20,800  
Total Revenue   20,800
Expenses:    
Rent Expenses 700  
Salary Expenses 1,560  
Utilities Expenses 295  
Total Expense   2,555
Net income   18,245

Table (3)

Hence, net income of .R Company as on July 31, 20XX is $18,245.

Prepare statement of retained earnings

R Company
Retained Earnings Statement
For the Month Ended July 31, 20XX
Particulars Amount
($)
Opening balance of retained earnings 0
Net income 18,245
Total 18,245
Dividends (1,800)
Ending closing of retained earnings 16,445

Table (4)

Hence, the retained earnings of R Company as on July 31, 20XX are $16,445.

Prepare the cash flow statement.

R Company
Statement of Cash Flows
Month Ended July 31, 20XX
Particulars Amount
($)
Amount
($)
Cash flow from operating activities    
Receipts:    
Collections from customers   15,800
Payments:    
Supplies (600)  
Rent Expenses (700)  
Salary Expenses (1,560)  
Utilities (295) (3,155)
Net cash from operating activities   12,645
Cash flow from investing activities    
Purchase of office equipment (2,300)  
Purchase of Roofing equipment (1,000)  
Net cash from investing activities   (3,300)
Cash flow from financing activities    
Issued common stock 80,000  
Less: Payment of cash dividends (1,800)  
Net cash from financing activities   78,200
Net increase in cash   87,545
Cash balance, July 1, 20XX   0
Cash balance, July 31, 20XX   87,545

Table (5)

Hence, the cash balance of the R Company as on July 31, 20XX is $87,545.

Prepare balance sheet

R Company
Balance sheet
As on July 31, 20XX
Particulars Amount
($)
Amount
($)
Assets    
Cash   87,545
Accounts Receivables   5,000
Office Supplies   3,700
Office Equipment   2,300
Roofing Equipment   5,000
Total Assets   103,545
Liabilities and Stockholder’s Equity    
Liabilities    
Accounts Payable   7,100
Stockholder’s Equity    
Common Stock 80,000  
Retained earnings 16,445  
Total stockholders’ equity   96,445
Total Liabilities and Stockholder’s equity   103,545

Table (6)

Hence, the total of the balance sheet of the R Company as on July 31, 20XX is of $103,545.

4.

To determine

To identify:

The changes on (a) total assets, (b) total liabilities, and (c) total equity.

4.

Expert Solution
Check Mark

Explanation of Solution

If the company purchase roofing equipment by owner investment instead of cash as mention in question.

• On assets- The asset of the company increases by $1,000.

• On liabilities- The liability of the company decreases by $4,000.

• On equity- The common stock is increased by $5,000 and common stock is the part of equity so equity increases by $5,000.

Thus, the assets and equity both will increase and liability will decrease.

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Chapter 1 Solutions

Financial and Managerial Accounting (Looseleaf) (Custom Package)

Ch. 1 - Describe the internal role of accounting for...Ch. 1 - 7. Identify three types of services typically...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - 10. What are some accounting-related professions? 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. 34DQCh. 1 - Prob. 35DQCh. 1 - Prob. 1QSCh. 1 - Prob. 2QSCh. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Prob. 6QSCh. 1 - Applying the accounting equation A1 Total assets...Ch. 1 - Applying the accounting equation A1 Use the...Ch. 1 - Prob. 9QSCh. 1 - Identifying effects of transactions using...Ch. 1 - Identifying effects of transactions using...Ch. 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 - Exercise 1-8 Using the accounting equation A1...Ch. 1 - Exercise 1-9 Using the accounting equation...Ch. 1 - Prob. 10ECh. 1 - Prob. 11ECh. 1 - Prob. 12ECh. 1 - Exercise 1-13 Identifying effects of transactions...Ch. 1 - Prob. 14ECh. 1 - Prob. 15ECh. 1 - Prob. 16ECh. 1 - Exercise 1-17 preparing a balance sheet P2 Use the...Ch. 1 - Prob. 18ECh. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Prob. 21ECh. 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 - Prob. 1PSBCh. 1 - Prob. 2PSBCh. 1 - Prob. 3PSBCh. 1 - Prob. 4PSBCh. 1 - Prob. 5PSBCh. 1 - Prob. 6PSBCh. 1 - Prob. 7PSBCh. 1 - Prob. 8PSBCh. 1 - Prob. 9PSBCh. 1 - Prob. 10PSBCh. 1 - Prob. 11PSBCh. 1 - Prob. 12PSBCh. 1 - Prob. 13PSBCh. 1 - Prob. 14PSBCh. 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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