Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Textbook Question
Chapter 1, Problem 1.6E
Changes in Owners’ Equity
The following amounts are available from the records of Coaches and Carriages Inc. at the end of the years indicated:
Required
- Compute the changes in Coaches and Carriages owners’ equity during 2015 and 2016.
- Compute the amount of Coaches and Carriages’ net income (or loss) for 2015 assuming that no dividends were paid and the owners made no additional contributions during the year.
- Compute the amount of Coaches and Carriages’ net income (or loss) for 2016 assuming that dividends paid during the year amounted to $10,000 and no additional contributions were made by the owners.
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REQUIRED
Use the information provided below to prepare the Statement of Changes in Equity of Ashton Traders for the
year ended 29 February 2020. Use the following format:
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 29 FEBRUARY 2020
Total (R)
Capital Accounts
Balance at 28 February 2019
Changes in capital
Balance at 29 February 2020
Ashwin (R)
Tony (R)
Ashwin (R)
Total (R)
Current Accounts
Balance at 28 February 2019
Net profit for the year
Tony (R)
Interest on capital
Salaries
Bonus
Profit Share
Drawings
Balance at 29 February 2020
INFORMATION
Ashwin and Tony are partners in a business trading as Ashton Traders. The following information is available
for the financial year ended 29 February 2020:
Extract from the ledger of Ashton Traders as at 29 February 2020
Debit
Credit
R
R
Capital: Ashwin
|Capital: Tony
600 000
400 000
Current a/c: Ashwin (01 March 2019)
Current a/c: Tony (01 March 2019)
Drawings: Ashwin
Drawings: Tony
40 000
30 000
400 000
500 000
Accounting
The following information is available for Sage Hill Inc. for the year ended
December 31, 2017:
Loss on discontinued
operations
Rent revenue
Income tax applicable
to continuing
operations
Administrative
expenses
Loss on write-down of
inventory
Gain on sale of
equipment
Unrealized gain on
available-for-sale
securities
$68,000
95,000
314,000
509,000
38,000
39,000
33,000
Retained earnings
January 1, 2017
Selling expenses
Income tax applicable to
loss on discontinued
operations
Cost of goods sold
Sales revenue
Cash dividends declared
Interest expense
200,000 shares were outstanding during all of 2017.
$1,420,000
867,000
24,000
1,672,000
3,760,000
211,000
57,000
Below are the restated amounts of net income and retained earnings for Volunteers Inc. and Raiders Inc. for the period 2012–2021. Volunteers began operations in 2013, while Raiders began several years earlier.Required: Calculate the balance of retained earnings each year for each company. Neither company paid dividends during this time.
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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