Corporate Financial Accounting
14th Edition
ISBN: 9781305653535
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 1, Problem 1.1APR
Transactions
On September 1 of the current year, Joy Tucker established a business to manage rental property. She completed the following transactions during September:
- A. Opened a business bank account with a deposit of $36,000 in exchange for common stock.
- B. Purchased office supplies on account, $1,800.
- C. Received cash from fees earned for managing rental property, $6,750.
- D. Paid rent on office and equipment for the month, $5,000.
E. Paid creditors on account, $1,375.
- F. Billed customers for fees earned for managing rental property, $9,500.
- G. Paid automobile expenses for month, $840, and miscellaneous expenses, $960.
- H. Paid office salaries, $3,600.
- I. Determined that the cost of supplies on hand was $350; therefore, the cost of supplies used was $1,450.
J. Paid dividends, $3,000.
Instructions
1. Indicate the effect of each transaction and the balances after each transaction, using the following tabular headings:
2. Briefly explain why issuing common stock and revenues increased stockholders’ equity, while dividends and expenses decreased stockholders’ equity.
3. Determine the net income for September.
4. How much did September's transactions increase or decrease
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On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $30,000 from personal funds.
b. Purchased office supplies on account, $3,010.
c. Paid creditor on account, $1,900.
d. Earned sales commissions, receiving cash, $30,690.
Transactions; Financial Statements
On July 1, 2019, Pat Glenn established Half Moon Realty. Pat completed the following transactions during the month of July:
a. Opened a business bank account with a deposit of $29,000 from personal funds.
b. Purchased office supplies on account, $2,940.
c. Paid creditor on account, $1,860.
d. Earned sales commissions, receiving cash, $29,990.
e. Paid rent on office and equipment for the month, $5,880.
f. Withdrew cash for personal use, $9,000.
g. Paid automobile expenses (indluding rental charge) for the month, $2,820, and miscellaneous expenses. S1,350.
h. Paid office salaries, $3,540.
i. Determined that the cost of supplies on hand was $990; therefore, the cost of supplies used was $1,950.
Required:
1. Indicate the effect of each transaction and the balances after each transaction. For those boxes in which no entry is required, leave the box blank, If required, enter negative values as neg
Assets
- Liabilities +
Owner's Equity
Accounts
Pat Glenn,…
Transactions
On April 1 of the current year, Andrea Byrd established a business to manage rental property. She completed the following transactions during April:
Opened a business bank account with a deposit of $45,000 from personal funds.
Purchased office supplies on account, $2,000.
Received cash from fees earned for managing rental property, $8,500.
Paid rent on office and equipment for the month, $5,000.
Paid creditors on account, $1,375.
Billed customers for fees earned for managing rental property, $11,250.
Paid automobile expenses for month, $840, and miscellaneous expenses, $900.
Paid office salaries, $3,600.
Determined that the cost of supplies on hand was $550; therefore, the cost of supplies used was $1,450.
Withdrew cash for personal use, $2,000.
Required:
1. Indicate the effect of each transaction and the balances after each transaction:For those boxes in which no entry is required, leave the box blank.For those boxes in which you must enter subtractive or negative…
Chapter 1 Solutions
Corporate Financial Accounting
Ch. 1 - Name some users of accounting information.Ch. 1 - Prob. 2DQCh. 1 - Prob. 3DQCh. 1 - Josh Reilly is the owner of Dispatch Delivery...Ch. 1 - 5. On July 12, Reliable Repair Service extended an...Ch. 1 - Prob. 6DQCh. 1 - Describe the difference between an account...Ch. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - The financial statements are interrelated. (A)...
Ch. 1 - Cost principle On June 25, Ritts Roofing extended...Ch. 1 - Prob. 1.2BECh. 1 - Transactions Interstate Delivery Service is owned...Ch. 1 - Income statement The revenues and expenses of...Ch. 1 - Prob. 1.5BECh. 1 - Balance sheet Using the following data for...Ch. 1 - Statement of cash flows A summary of cash flows...Ch. 1 - Prob. 1.1EXCh. 1 - Prob. 1.2EXCh. 1 - Prob. 1.3EXCh. 1 - Prob. 1.4EXCh. 1 - Accounting equation The total assets and total...Ch. 1 - Accounting equation Determine the missing amount...Ch. 1 - Prob. 1.7EXCh. 1 - Asset, liability, and stockholders equity items...Ch. 1 - Effect of transactions on accounting equation What...Ch. 1 - Effect of transactions on accounting equation A. A...Ch. 1 - Prob. 1.11EXCh. 1 - Transactions The following selected transactions...Ch. 1 - Nature of transactions Teri West operates her own...Ch. 1 - Net income and dividends The income statement for...Ch. 1 - Net income and stockholders equity for four...Ch. 1 - Balance sheet items From the following list of...Ch. 1 - Income statement items From the following list of...Ch. 1 - Prob. 1.18EXCh. 1 - Prob. 1.19EXCh. 1 - Prob. 1.20EXCh. 1 - Balance sheets, net income Financial information...Ch. 1 - Financial statements Each of the following items...Ch. 1 - Prob. 1.23EXCh. 1 - Prob. 1.24EXCh. 1 - Financial statements We-Sell Realty, organized as...Ch. 1 - Transactions On September 1 of the current year,...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Seth Feye established...Ch. 1 - Transactions; financial statements On August 1,...Ch. 1 - Transactions; financial statements DLite Dry...Ch. 1 - Missing amounts from financial statements The...Ch. 1 - Transactions Amy Austin established an insurance...Ch. 1 - Financial statements The amounts of the assets and...Ch. 1 - Financial statements Jose Loder established Bronco...Ch. 1 - Prob. 1.4BPRCh. 1 - Transactions; financial statements Bevs Dry...Ch. 1 - Missing amount from financial statements The...Ch. 1 - Peyton Smith enjoys listening to all types of...Ch. 1 - Prob. 1.1ADMCh. 1 - Home Depot: Ratio of liabilities to stockholders'...Ch. 1 - Lowes: Ratio of liabilities to stockholders equity...Ch. 1 - Prob. 1.4ADMCh. 1 - Prob. 1.1TIFCh. 1 - Prob. 1.3TIF
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