Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 8, Problem 2E
Exercise 8-2 Effect of accounting events on the financial statements of a sole
proprietorship
A sole proprietorship was started on January 1, 2018, when it received $60,000 cash from Marlin Jones, the owner. During 2018, the company earned $35,300 in cash revenues and paid $16,200 in cash expenses. Jones withdrew $1,000 cash from the business during 2018.
Required
Prepare the income statement, capital statement (statement of changes in equity),
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Students have asked these similar questions
In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022. Sandra Robinson is the owner of
Robinson Company.
Accounts payable
Accounts receivable
Cash
Owner's capital
Total Assets
Liabilities
$94,600
Prepare a balance sheet. (List Assets in order of liquidity.)
Owner's Equity
72,400
45,700
23,500
ROBINSON COMPANY
Balance Sheet
For the Year Ended December 31, 2022
Assets
Liabilities and Owner's Equity
Total Liabilities and Owner's Equity
$
$
$
118,100
94,600
23,500
118,100
Current Attempt in Progress
Your examination of the records of a company that follows the cash basis of accounting tells you that the company's reported cash-
basis earnings in 2022 are $30,500. If this firm had followed accrual-basis accounting practices, it would have reported the following
year-end balances.
2022
$3,800
Accounts receivable
Supplies on hand
Unpaid wages owed
2,160
2,340
Other unpaid expenses 1.430 1.340
2021
$2,900
1,380
1.550
Determine the company's net earnings on an accrual basis for 2022.
Net earnings on an accrual basis for 2022
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Account Title
Cash
Accounts receivable
Equipment
Accumulated depreciation
Salaries payable
Common stock
Retained earnings
Total
50
The following is a summary of the transactions for the year:
a. Provided services, $136,000, of which $40,800 was on account and the balance was received in cash.
b. Collected on accounts receivable, $27,100.
c. Issued shares of common stock in exchange for $16,500 in cash.
d. Paid salaries, $49,750 (of which $10,250 was for salaries payable at the end of the prior year).
e. Paid miscellaneous expense for various items, $26,800.
f. Purchased equipment for $19,000 in cash.
g. Paid $3,300 in cash dividends to shareholders.
Additional information:
h. Accrued salaries at year-end amounted to $995.
i. Depreciation for the year on the equipment is $3,200.
S
Debits
$ 28,400
18,500
32,000
E
$ 78,900
D
Required:
1 to 3. Prepare a general journal entry for each…
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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