Financial Accounting
3rd Edition
ISBN: 9780133791129
Author: Jane L. Reimers
Publisher: Pearson Higher Ed
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Chapter 1, Problem 54PB
1.
To determine
Classify each business transactions as an operating, investing or financing activity.
2.
To determine
Indicate whether the given transaction increase, decrease, or no effect on the total assets of the business.
3.
To determine
Indicate whether the given transaction increase, decrease, or no effect on the net income.
4.
To determine
Indicate whether the given amount would appear on the income statement (IS), the balance sheet (BS), the statement of cash flows (CF), or the statement of changes in shareholder’s equity (SE).
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Record each of these transactions in Journal entries and prepare the Ledger for Cash & Cash Equivalents, Accounts Receivable and Accounts Payable:
1st Sunny Barcelona started the business by depositing $50,000 received from the sale of capital stock in the company bank account.
22nd Purchased a building for $36,000, paying $6,000 in cash and issuing a note payable for the remaining $30,000.
25th Purchased tools and equipment on account, $13,800.
27th Sold some of the tools at a price equal to their cost, $1,800, collectible within 45 days.
2nd Received $600 in partial collection of the account receivable from the sale of tools.
7th Paid $6,800 in partial payment of an account payable.
11th Received $2,200 of sales revenue in cash.
2oth Purchased radio advertising from RAC105 to be aired in March. The cost was $470, payable within 30 days.
22nd Purchased office equipment for $15,000 cash.
26th Performed repair services and billed clients $2,000. The entire amount will…
Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April.
A. The owners invested $9,000 from their personal account to the business account.
B. Paid rent$650 with check #101.
C. Initiated a petty cash fund $650 with check #102.
D. Received $850 cash for services rendered.
E. Purchased office supplies for $180 with check #103.
F. Purchased computer equipment $9,500, paid $1,600 with check #104, and will pay the remainder in 30 days.
G. Received s1,200 cash for services rendered.
H. Paid wages $560, check #105.
I. Petty cash reimbursement: office supplies $250, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $137. Check #106.
J. Increased Petty Cash by $100, check #107.
Inner Resources Company received the following bank statement.
Bank Statement
Beginning balance
Deposits
Checks
A.
$9,000
101
$650
G.
1,200
102
650
103
180
106
513
Bank service charges
150
Total $10,200
$2,143
Ending balance
$8,057…
You are the Accountant for Ching Wei Tai, a sole trader business operating downtown,
Kingston. The following transactions occurred during the year.
2021
December
Started Business with capital of $16,000 in the bank and $13,600 in cash.
Bought goods on credit from the following persons: Grant $3,200; Brown $4,800 and Ricketts $3,000
Sold goods on credit to: Marvin $10,000; Jamie $24,800; Ruth $1,800
4.
5
Paid Rent by cash $2,080.
6.
Marvin paid us his account by cheque $2000
Jamie paid us $1,400 by cheque.
10
We paid the following by cheque: Grant S1,600; Brown $2,000.
12
Paid Electricity bill by cash $1000
31
The owner, Ching Wei Tai, took $2,400 from the bank for personal use.
31
Required:
Enter the following transactions in the Ledger Accounts (T-Accounts) of Ching Wei Tai
Balance off the accounts (where appropriate, do the Balance brought down/Balance
Brought Forward as at January 1, 2022)
Extract a trial balance as at December 31, 2021 for Ching Wei Tai.
I.
II.
II
Chapter 1 Solutions
Financial Accounting
Ch. 1 - 1. What is the main purpose of a business? 2....Ch. 1 - Prob. 2YTCh. 1 - 1. What are the two sources of financing for a...Ch. 1 - 1. What are revenues and expenses? 2. What are the...Ch. 1 - 1. What are the two parts of shareholders equity?...Ch. 1 - Prob. 6YTCh. 1 - Prob. 7YTCh. 1 - Prob. 1QCh. 1 - Prob. 2QCh. 1 - Prob. 3Q
Ch. 1 - Prob. 4QCh. 1 - What are the advantages of the corporate form of...Ch. 1 - What are the disadvantages of the corporate form...Ch. 1 - Prob. 7QCh. 1 - Prob. 8QCh. 1 - What are the basic financial statements? Describe...Ch. 1 - What makes the income statement different from the...Ch. 1 - Prob. 11QCh. 1 - What type of activities relate to what the firm is...Ch. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Online Pharmacy Company borrowed 5,000 cash from...Ch. 1 - Prob. 7MCQCh. 1 - During its first year of business, West Company...Ch. 1 - Interest is the cost of a. purchasing inventory....Ch. 1 - Prob. 10MCQCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Identify balance sheet items. (LO 4). Classify the...Ch. 1 - Calculate owners equity. (LO 4). Doughnut Company...Ch. 1 - Prob. 4SEACh. 1 - Prob. 5SEACh. 1 - Calculate owners equity. (LO 4). Pasta Enterprises...Ch. 1 - Super Shop had a retained earnings balance of...Ch. 1 - Prob. 8SEBCh. 1 - Prob. 9SEBCh. 1 - Breck Company shows 80,000 worth of assets on its...Ch. 1 - Prob. 11SEBCh. 1 - For each of the following, calculate the missing...Ch. 1 - Prob. 13SEBCh. 1 - M Company had a retained earnings balance of 4,200...Ch. 1 - Prob. 15EACh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 17EACh. 1 - Prob. 18EACh. 1 - Enter each transaction below into the accounting...Ch. 1 - Prob. 20EACh. 1 - For each of the transactions given, tell whether...Ch. 1 - Prob. 22EACh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 24EACh. 1 - Relationship between income statement and balance...Ch. 1 - Bob started a pool cleaning business on the first...Ch. 1 - Prob. 27EACh. 1 - Retained earnings and cash. (LO 4). Checkmate...Ch. 1 - Prob. 29EACh. 1 - Prob. 30EBCh. 1 - Prob. 31EBCh. 1 - Prob. 32EBCh. 1 - Prob. 33EBCh. 1 - Prob. 34EBCh. 1 - Classify business transactions. (LO 2). For each...Ch. 1 - Prob. 36EBCh. 1 - Prob. 37EBCh. 1 - Enter each transaction into the accounting...Ch. 1 - Prob. 39EBCh. 1 - Prob. 40EBCh. 1 - Frank Frock started a consulting business on the...Ch. 1 - Prob. 42EBCh. 1 - Prob. 43EBCh. 1 - Prob. 44EBCh. 1 - Prob. 45PACh. 1 - Prob. 46PACh. 1 - Prob. 47PACh. 1 - Analyze business transactions and the effect on...Ch. 1 - Prob. 49PACh. 1 - Analyze business transactions and prepare the...Ch. 1 - Prob. 51PACh. 1 - Prob. 52PBCh. 1 - Analyze business transactions using the accounting...Ch. 1 - Prob. 54PBCh. 1 - Prob. 55PBCh. 1 - Prob. 56PBCh. 1 - Prob. 57PBCh. 1 - Prob. 58PBCh. 1 - Prob. 1FSACh. 1 - Prob. 2FSACh. 1 - Prob. 3FSACh. 1 - What is the Walt Disney Companys key objective? Go...
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