PROBLEM 3.2B
1.
+ 20,000 + 20,000
Cash Joseph Tejan, Capital
PROBLEM 3.3B (continued)
2.
+ 8,000 + 8,000
Cash Fees Income
PROBLEM 3.3B (continued)
PROBLEM 3.4B
(a) + 120,000 (b) – 6,400 (f) + 9,150 (h) – 4,500
(d) + 8,000 (c) – 36,000 (n) + 5,500 (p) – 3,800
(h) + 4,500 (e) – 1,600 Bal. 6,350
.
(k) + 19,600 (c) + 36,000
(q) + 5,440
Bal
.
25,040
(i) – 3,600 (g) + 5,600 (a) + 120,000
(k) + 9,800
(q) + 5,440
Bal. 17,240
Accounts Payable Kathryn Price, Capital
Cash Accounts Receivable
Office Equipment Automobile
PROBLEM 3.4B (continued)
(s) + 6,000 (d) + 8,000 (b) + 6,400
(f) + 9,150
(m) + 4,750
(o) + 796
Analyze: Credit customers owe the company $6,350 (Accounts Receivable).
Fees Income Rent Expense
Kathryn Price, Drawing
PROBLEM 3.5B
6105400
635000
3600000
2504000
Office Furniture 560000
Accounts Payable 1724000
2740000
240000
280400Net Income
Revenue
Fees Income
Expenses
Auto Expense
Month Ended April 30, 2013
Kathryn Price, Counselor and Attorney at Law
Income Statement
Automobile
Office Equipment
ACCOUNT NAME DEBIT CREDIT
Kathryn Price, Counselor and Attorney at Law
Trial Balance
April 30, 2013
Cash
Accounts Receivable
PROBLEM 3.5B (continued)
12000000
280400
Cash 6105400 Accounts Payable 1724000
Office Furniture 560000 Kathryn Price, Capital 11680400
Total Assets 13404400 Total Liabilities & Owner’s Equity 13404400
Analyze: The net decrease in owner’s equity during the month of April was $3,196.
LiabilitiesAssets
Kathryn Price, Counselor and Attorney at Law
April 30, 2013
Balance Sheet
Kathryn Price, Counselor and Attorney at Law
Statement of Owner’s Equity
Month Ended April 30, 2013
Kathryn Price, Capital, April 1, 2013
Net Income for April
CRITICAL THINKING PROBLEM 3.1
3,000 1,000 1,150 1,000
600 1,800
500 200
Cash Accounts Receivable Equipment and Tools
CRITICAL THINKING PROBLEM 3.1 (continued)
Revenue
Elegant Lawn Care
Income Statement
Three Months Ended August 31, 2013
CRITICAL THINKING PROBLEM 3.2
(a) + 20,000 (b) – 2,000 (f) + 1,560 (i) – 2,160 (c) + 3,600
(d) + 4,050 (c) – 3,600 (0) + 3,200 (p) – 1,200 (j) + 590
(i) + 2,160 (e) – 210 Bal
.
1,400 Bal
.
4,190
.
.
.
Cash Accounts Receivable Office Furniture
.
CRITICAL THINKING PROBLEM 3.2 (continued)
Linda Carter, Architect
Trial Balance
January 31, 2013
CRITICAL THINKING PROBLEM 3.2 (continued)
Linda Carter, Capital, January 1, 2013 2000000
Net Income for January 379000
Cash 1560000 Accounts Payable 3 7 5 00
Accounts Receivable 140000
Assets
Linda Carter, Architect
Statement of Owner’s Equity
Month Ended January 31, 2013
Linda Carter, Architect
Liabilities
Balance Sheet
January 31, 2013
Managerial Focus:
1. Provide summaries of:
2. Review of financial records containing cash available, amounts due, and dates due.
4. Net income (or net loss) for the period.
Ethical Dilemma:
1. Financial data, operational information, plans for the future.
3. $1.9 million of cash, cash equivalents, and short-term investments were on hand at December 31,
4. Financial results are less favorable. GAAP net income was $386.5 million in fiscal year 2009
compared to $871.8 million in fiscal year 2008.
5. Adobe is targeting revenue of $800 million to $850 million for the first quarter of 2010.
Teamwork:
All companies would have a cash account and accounts payable. A plumbing service would have
accounts receivable whereas a clothing store would also have a credit card receivable. Both grocery
SOLUTIONS TO BUSINESS CONNECTIONS
Part A True-False
1. TRUE
2. FALSE
12. TRUE
14. TRUE
15. TRUE
Part B Matching
1. f
Part C Completion
1. normal balance
SOLUTIONS TO PRACTICE TEST