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    Acc 500 SM CH 1

    Uploaded by

    Mohammad Jaradeh
    The document contains multiple parts that provide accounting information for 5 different companies (A, B, C, D, and E) for the years ending December 31, 2010 and December 31, 2011. It includes details of assets, liabilities, equity, owner investments, net income, and owner withdrawals to calculate ending balances. For each company, it determines ending equity and uses that to back into beginning equity or other missing values like net income or owner investments for the year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Acc 500 SM CH 1

    Uploaded by

    Mohammad Jaradeh
    37 views8 pages
    The document contains multiple parts that provide accounting information for 5 different companies (A, B, C, D, and E) for the years ending December 31, 2010 and December 31, 2011. It includes details of assets, liabilities, equity, owner investments, net income, and owner withdrawals to calculate ending balances. For each company, it determines ending equity and uses that to back into beginning equity or other missing values like net income or owner investments for the year.

    Original Description:

    solutions to accounting

    Original Title

    ACC 500 SM CH 1

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    The document contains multiple parts that provide accounting information for 5 different companies (A, B, C, D, and E) for the years ending December 31, 2010 and December 31, 2011. It includes details of assets, liabilities, equity, owner investments, net income, and owner withdrawals to calculate ending balances. For each company, it determines ending equity and uses that to back into beginning equity or other missing values like net income or owner investments for the year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    37 views8 pages

    Acc 500 SM CH 1

    Uploaded by

    Mohammad Jaradeh
    The document contains multiple parts that provide accounting information for 5 different companies (A, B, C, D, and E) for the years ending December 31, 2010 and December 31, 2011. It includes details of assets, liabilities, equity, owner investments, net income, and owner withdrawals to calculate ending balances. For each company, it determines ending equity and uses that to back into beginning equity or other missing values like net income or owner investments for the year.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 8

    Exercise 1-11 (30 minutes)

    a.
    b.
    Bal.

    c.
    Bal.

    d.
    Bal.

    e.
    Bal.

    f.
    Bal.

    g.
    Bal.

    h.
    Bal.

    i.
    Bal.

    j.
    Bal.

    Accounts

    Equip-

    + Receivable + ment
    +$50,000
    + $10,000
    1,600
    ______
    48,400 +
    + 10,000
    _______
    + 12,000
    48,400 +
    + 22,000
    + 2,000
    ______
    50,400 +
    + 22,000
    _______ +
    $7,000
    ______
    50,400 +
    7,000 + 22,000
    8,000
    ______ +
    8,000
    42,400 +
    7,000 + 30,000
    2,400
    ______
    ______
    40,000 +
    7,000 + 30,000
    + 5,000 5,000
    ______
    45,000 +
    2,000 + 30,000
    12,000
    ______
    ______
    33,000 +
    2,000 + 30,000

    500
    ______
    ______
    $32,500 +
    $2,000 + $30,000
    Cash

    Accounts
    Payable

    =
    =
    =
    =
    =
    =
    =
    =
    =
    =

    +$12,000
    12,000
    _______
    12,000
    _______
    12,000
    _______
    12,000
    _______
    12,000
    _______
    12,000
    12,000
    0
    _______
    $
    0

    L. Gold,

    + Capital
    + $60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + 60,000
    ______
    + $60,000

    L. Gold,
    Withdrawals

    + Revenues Expenses

    +
    +
    +
    +
    +
    +
    +
    +
    $500
    $500 +

    $2,000
    2,000
    7,000
    9,000
    _____
    9,000
    _____
    9,000
    _____
    9,000
    _____
    9,000
    _____
    $9,000

    $1,600
    1,600
    _____
    1,600
    _____
    1,600
    _____
    1,600
    _____
    1,600
    2,400
    4,000
    _____
    4,000
    _____
    4,000
    _____
    $4,000

    Exercise 1-12
    a.

    Started the business with the owner investing $20,000 cash.

    b. Purchased office supplies for $1,500 by paying $1,000 cash and putting the
    remaining $500 balance on credit.
    c.

    Purchased office furniture by paying $8,000 cash.

    d. Billed a customer $3,000 for services earned.


    e.

    Provided services for $500 cash.

    Exercise 1-14 (15 minutes)


    REAL SOLUTIONS
    Income Statement
    For Month Ended October 31
    Revenues:
    Consulting fees earned ....................
    Expenses:
    Salaries expense ..............................
    Rent expense ....................................
    Miscellaneous expenses .................
    Telephone expense ..........................
    Total expenses .................................
    Net income ..................................................

    $15,000
    $6,000
    2,550
    680
    660
    9,890
    $ 5,110

    Problem 1-2A (40 minutes)


    Part 1
    Company A:
    (a)

    Equity on December 31, 2010:


    Assets .......................................................... $45,000
    Liabilities ..................................................... (23,500)
    Equity .......................................................... $21,500

    (b)

    Equity on December 31, 2011:


    Equity, December 31, 2010 ........................ $21,500
    Plus owner investments ............................
    5,000
    Plus net income ..........................................
    7,500
    Less owners withdrawals ......................... (2,500)
    Equity, December 31, 2011 ........................ $31,500

    (c)

    Amount of liabilities on December 31, 2011:


    Assets .......................................................... $48,000
    Equity .......................................................... (31,500)
    Liabilities ..................................................... $16,500

    Part 2
    Company B:
    (a) and (b)
    Equity:
    12/31/2010
    Assets ................................... $35,000
    Liabilities .............................. (22,500)
    Equity ................................... $12,500
    (c)

    12/31/2011
    $41,000
    (27,500)
    $13,500

    Net income for 2011:


    Equity, December 31, 2010 ..................... $12,500
    Plus owner investments .........................
    1,500
    Plus net income .......................................
    ?
    Less owners withdrawals ...................... (3,000)
    Equity, December 31, 2011 ..................... $13,500
    Therefore, net income must have been $ 2,500.

    Part 3
    Company C:
    First, calculate the beginning balance of equity:
    Dec. 31, 2010
    Assets .......................................................... $29,000
    Liabilities ..................................................... (14,000)
    Equity .......................................................... $15,000
    Next, find the ending balance of equity by completing this table:
    Equity, December 31, 2010 ........................ $15,000
    Plus owner investments ............................
    7,750
    Plus net income ..........................................
    9,000
    Less owners withdrawals ......................... (3,875)
    Equity, December 31, 2011 ........................ $27,875
    Finally, find the ending amount of assets by adding the ending balance of equity to the ending balance of
    liabilities:
    Dec. 31, 2011
    Liabilities ..................................................... $19,000
    Equity .......................................................... 27,875
    Assets .......................................................... $46,875
    Part 4
    Company D:
    First, calculate the beginning and ending owners equity balances:

    12/31/2010 12/31/2011
    Assets ...................................... $80,000
    $ 125,000
    Liabilities ................................. (38,000)
    (64,000)
    Owners Equity ....................... $42,000
    $ 61,000
    Then, find the amount of owner investments during 2011:
    Equity, December 31, 2010 ..........................
    Plus owner investments ..............................
    Plus net income ............................................
    Less owner withdrawals ..............................
    Equity, December 31, 2011 ..........................

    $42,000
    ?
    12,000
    0
    $61,000

    Thus, owner investments must have been: $ 7,000

    Problem 1-2A (Concluded)


    Part 5
    Company E:
    First, compute the balance of equity as of December 31, 2011:
    Assets .......................................................... $112,500
    Liabilities ..................................................... (75,000)
    Equity .......................................................... $ 37,500
    Next, find the beginning balance of equity as follows:
    Equity, December 31, 2010 ........................ $
    ?
    Plus owner investments ............................
    4,500
    Plus net income .......................................... 18,000
    Less owners withdrawals ......................... (9,000)
    Equity, December 31, 2011 ........................ $37,500
    Thus, the beginning balance of equity was $24,000.
    Finally, find the beginning amount of liabilities by subtracting the beginning
    balance of equity from the beginning balance of assets:
    Dec. 31, 2010
    Assets .......................................................... $123,000
    Equity .......................................................... (24,000)
    Liabilities ..................................................... $ 99,000

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