Financial Accounting: Tools for Business Decision Making, 8th Edition
8th Edition
ISBN: 9781118953808
Author: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Publisher: WILEY
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Textbook Question
Chapter 3, Problem 3Q
Are the following events recorded in the accounting records? Explain your answer in each case.
- (a) A major stockholder of the company dies.
- (b) Supplies are purchased on account.
- (c) An employee is fired.
- (d) The company pays a cash dividend to its stock-holders.
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2. Which of the following subsequent (post-balance sheet) events would require note disclosure, but no adjustment to the year-
end financial statements, which haven't been issued yet?
a) Retirement of the company president.
b) Settlement of lawsuit at an amount different from the contingent liability recorded on the balance sheet.
c) Employee strike.
d) Declared and issued a stock split.
e) Issuance of a large amount of capital stock for cash.
f) None of the above.
Which of the following statements are true regarding corporations?
Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a
correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with
a question mark will be automatically graded as incorrect.
1. It does not end with the death of an owner.
2. Owners are personally liable for corporate debts.
3. Stockholders do not have the power to bind the corporation to contracts.
4. The president and vice presidents choose the board of directors.
5. It has many of the same rights as an individual.
6. The sale of shares from one stockholder to another does not impact operations. An exception is when it changes the
makeup of directors.
7. Corporations are often subject to fewer regulations than partnership.
1. Are the following events recorded in the accounting records? Do they have an affect on the basic accounting question?
a. The owner of the company dies.
b. Supplies are purchased on account
c. An employee is fired.
d. The owner of the business withdraws cash from the businesses for personal use.
2. Indicate how the following business transactions affect the basic accounting equation (what account increase and decrease)
a. Paid cash janitorial services
b. Purchased equipment for cash
c. Invested cash in the business
d. Paid accounts payable in full
3. Carla Enterprises had a capital balance of $182000 at the beginning of the period. At the end of the accounting period, the capital balance was $194000. Assuming no additional investment or withdrawals during the period, what is the net income for the period?
Chapter 3 Solutions
Financial Accounting: Tools for Business Decision Making, 8th Edition
Ch. 3 - Prob. 1QCh. 3 - Can a business enter into a transaction that...Ch. 3 - Are the followingevents recorded in the accounting...Ch. 3 - Prob. 4QCh. 3 - Prob. 5QCh. 3 - Prob. 6QCh. 3 - Prob. 7QCh. 3 - Misty Reno, a beginning accounting student,...Ch. 3 - Prob. 9QCh. 3 - What is the normal balance for each of these...
Ch. 3 - Prob. 11QCh. 3 - Prob. 12QCh. 3 - Prob. 13QCh. 3 - Prob. 14QCh. 3 - Prob. 15QCh. 3 - (a) When entering a transaction in the journal,...Ch. 3 - (a) Should accounting transaction debits and...Ch. 3 - Journalize these accounting transactions. (a)...Ch. 3 - Prob. 19QCh. 3 - Prob. 20QCh. 3 - Prob. 21QCh. 3 - Prob. 22QCh. 3 - Prob. 3.1BECh. 3 - Prob. 3.2BECh. 3 - Prob. 3.3BECh. 3 - For each of the following accounts, indicate the...Ch. 3 - Prob. 3.5BECh. 3 - Prob. 3.6BECh. 3 - Prob. 3.7BECh. 3 - Tilton Corporation has the following transactions...Ch. 3 - Prob. 3.9BECh. 3 - Selected transactions for Montes Company are...Ch. 3 - Prob. 3.11BECh. 3 - Prob. 3.12BECh. 3 - Prob. 3.1DIECh. 3 - Prob. 3.2DIECh. 3 - Prob. 3.3DIECh. 3 - Prob. 3.4DIECh. 3 - Prob. 3.5DIECh. 3 - Prob. 3.1ECh. 3 - Prob. 3.2ECh. 3 - Prob. 3.3ECh. 3 - Prob. 3.4ECh. 3 - Prob. 3.5ECh. 3 - Prob. 3.6ECh. 3 - Prob. 3.7ECh. 3 - Prob. 3.8ECh. 3 - Prob. 3.9ECh. 3 - Prob. 3.10ECh. 3 - Prob. 3.11ECh. 3 - Prob. 3.12ECh. 3 - Prob. 3.13ECh. 3 - Prob. 3.14ECh. 3 - Prob. 3.15ECh. 3 - Prob. 3.16ECh. 3 - Prob. 3.17ECh. 3 - Prob. 3.18ECh. 3 - Prob. 3.19ECh. 3 - Prob. 3.20ECh. 3 - Prob. 3.21ECh. 3 - Prob. 3.22ECh. 3 - Prob. 3.1APCh. 3 - Prob. 3.2APCh. 3 - Prob. 3.3APCh. 3 - Prob. 3.4APCh. 3 - Prob. 3.5APCh. 3 - Prob. 3.6APCh. 3 - Prob. 3.7APCh. 3 - Prob. 3.8APCh. 3 - Prob. 3.9APCh. 3 - Prob. 3.10APCh. 3 - Prob. 3.11APCh. 3 - Prob. 3.1EYCTCh. 3 - Prob. 3.2EYCTCh. 3 - Prob. 3.3EYCTCh. 3 - Prob. 3.4EYCTCh. 3 - Prob. 3.6EYCTCh. 3 - Prob. 3.7EYCTCh. 3 - Prob. 3.8EYCTCh. 3 - Prob. 3.9EYCTCh. 3 - Prob. 3.11EYCTCh. 3 - Prob. 3.1IFRS
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