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    Questions Chapter 1 (Continued) : Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only)

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    The document discusses key accounting concepts related to the income statement, owner's equity statement, and balance sheet. It provides examples of how net income is presented on each of these key financial statements. Specifically, it states that net income appears on the income statement, is added to beginning capital on the owner's equity statement, and indirectly impacts the capital account on the balance sheet. The document also includes example calculations related to the determination and presentation of net income.

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    Questions Chapter 1 (Continued) : Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only)

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    xanax_1984
    14 views2 pages
    The document discusses key accounting concepts related to the income statement, owner's equity statement, and balance sheet. It provides examples of how net income is presented on each of these key financial statements. Specifically, it states that net income appears on the income statement, is added to beginning capital on the owner's equity statement, and indirectly impacts the capital account on the balance sheet. The document also includes example calculations related to the determination and presentation of net income.

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    The document discusses key accounting concepts related to the income statement, owner's equity statement, and balance sheet. It provides examples of how net income is presented on each of these key financial statements. Specifically, it states that net income appears on the income statement, is added to beginning capital on the owner's equity statement, and indirectly impacts the capital account on the balance sheet. The document also includes example calculations related to the determination and presentation of net income.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views2 pages

    Questions Chapter 1 (Continued) : Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only)

    Uploaded by

    xanax_1984
    The document discusses key accounting concepts related to the income statement, owner's equity statement, and balance sheet. It provides examples of how net income is presented on each of these key financial statements. Specifically, it states that net income appears on the income statement, is added to beginning capital on the owner's equity statement, and indirectly impacts the capital account on the balance sheet. The document also includes example calculations related to the determination and presentation of net income.

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    © All Rights Reserved
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    Download as pdf or txt
    of 2

    Questions Chapter 1 (Continued)

    19. Yes. Net income does appear on the income statement—it is the result of subtracting expenses
    from revenues. In addition, net income appears in the owner’s equity statement—it is shown as
    an addition to the beginning-of-period capital. Indirectly, the net income of a company is also
    included in the balance sheet. It is included in the capital account which appears in the owner’s
    equity section of the balance sheet.

    20. (a) Ending capital balance ..................................................................................... $198,000


    Beginning capital balance ................................................................................ 168,000
    Net income....................................................................................................... $ 30,000

    (b) Ending capital balance ..................................................................................... $198,000


    Beginning capital balance ................................................................................ 168,000
    30,000
    Deduct: Investment ......................................................................................... 13,000
    Net income....................................................................................................... $ 17,000

    21. (a) Total revenues ($20,000 + $70,000) ................................................................ $90,000

    (b) Total expenses ($26,000 + $40,000) ................................................................ $66,000

    (c) Total revenues ................................................................................................. $90,000


    Total expenses................................................................................................. 66,000
    Net income....................................................................................................... $24,000

    22. Apple’s accounting equation at September 28, 2013 was $207,000,000,000 = $83,451,000,000 +
    $123,549,000,000.

    1-8 Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only)
    SOLUTIONS TO BRIEF EXERCISES

    BRIEF EXERCISE 1-1

    (a) $90,000 – $50,000 = $40,000 (Owner’s Equity).


    (b) $44,000 + $70,000 = $114,000 (Assets).
    (c) $94,000 – $53,000 = $41,000 (Liabilities).

    BRIEF EXERCISE 1-2

    (a) $120,000 + $232,000 = $352,000 (Total assets).


    (b) $190,000 – $91,000 = $99,000 (Total liabilities).
    (c) $800,000 – 0.5($800,000) = $400,000 (Owner’s equity).

    BRIEF EXERCISE 1-3

    (a) ($800,000 + $150,000) – ($300,000 – $60,000) = $710,000


    (Owner’s equity).
    (b) ($300,000 + $100,000) + ($800,000 – $300,000 – $70,000) = $830,000
    (Assets).
    (c) ($800,000 – $80,000) – ($800,000 – $300,000 + $120,000) = $100,000
    (Liabilities).

    BRIEF EXERCISE 1-4

    Owner’s Equity
    Owner’s Owner’s
    Assets = Liabilities + Capital – Drawings + Revenues – Expenses

    (a) X = $90,000 + $150,000 – $40,000 + $450,000 – $320,000


    X = $90,000 + $240,000
    X = $330,000

    (b) $57,000 = X + $25,000 – $7,000 + $52,000 – $35,000


    $57,000 = X + $35,000
    X = $22,000 ($57,000 – $35,000)

    (c) $600,000 = ($600,000 x 2/3) + X (Owner’s equity)


    $600,000 = $400,000 + X
    X = $200,000

    Weygandt, Accounting Principles, 12/e, Solutions Manual (For Instructor Use Only) 1-9

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