Student Name:
Class:
Liabilities + Equity
Accounts Office Accounts Common
Date Cash Receivable Equipment Payable Stock Dividends Revenues Expenses
May 1 $40,000 40,000
1(2,200) (2,200)
31,890 1,890
5(750) (750)
85,400 5,400
12 2,500 2,500
15 (750) (750)
20 2,500 (2,500)
22 3,200 3,200
25 3,200 (3,200)
26 (1,890) (1,890)
27 80 (80)
28 (750) (750)
30 (300) (300)
30 (280) (280)
31 (1,400) (1,400)
42,780$ –$ 1,890$ 80$ 40,000$ (1,400)$ 11,100$ (5,110)$
Correct! Correct! Correct! Correct! Correct! Correct! Correct! Correct!
11,100$
2,200
1,500
750
300
280
80
5,110
5,990$
Correct!
$0
5,990
$5,990
1,400
$4,590
Correct!
Problem 01-07A
GRAHAM COMPANY
GRAHAM COMPANY
GRAHAM COMPANY
Consulting services revenue
Expenses
Cleaning expense
McGraw-Hill/Irwin
Instructor
Assets =
For Month Ended May 31
Income Statement
For the Month Ended May 31
Statement of Retained Earnings
Revenues
Rent expense
Salaries expense
Telephone expense
Advertising expense
Total expenses
Net income
Utilities expense
Retained earnings, May 1
Add: Net income
Less: Withdrawals by owner
H. Graham, Capital, May 31
Student Name:
Class:
Problem 01-07A
McGraw-Hill/Irwin
Instructor
Assets Liabilities
42,780$ 80$
1,890
Owner’s Equity
40,000
Retained earnings 4,590
44,670$ 44,670$
Correct! Correct!
11,100$
(2,200)
(750)
(300)
(280)
(1,500)
6,070$ «- Correct!
(1,890)
(1,890) «- Correct!
40,000
(1,400)
38,600 «- Correct!
42,780$
–
42,780$
Correct!
GRAHAM COMPANY
Cash
May 31
Balance Sheet
GRAHAM COMPANY
Office equipment
Total assets
Accounts payable
Common stock
Total liabilities and equity
Cash flows from operating activities
For Month Ended May 31
Statement of Cash Flows
Cash received from customers
Cash paid for rent
Cash paid for cleaning
Cash paid for telephone
Cash paid for utilities
Cash paid to employees
Net cash provided by operating activities
Cash flows from investing activities
Purchase of equipment
Net cash used by investing activities
Net increase in cash
Cash balance, May 1
Cash balance, May 31
Cash flows from financing activities
Investments by owner
Dividend to stockholder
Net cash provided by financing activities
May
1 Cash invested in company 40,000$
1 Cash paid for May rent 2,200
3 Office equipment purchased on credit 1,890
5 Cash paid for May cleaning services 750
8 Cash collected for services provided 5,400
12 Provided services on credit 2,500
15 Cash paid for assistant’s salary (1st half of May) 750
20 Cash received for services provided May 12 2,500
22 Provided services on credit 3,200
25 Cash received for services provided May 22 3,200
26 Cash paid for office equipment purchased May 3 1,890
27 Purchased May advertising, payment due June 1 80
28 Cash paid for assistant’s salary (2nd half of May) 750
30 Cash paid for May telephone bill 300
30 Cash paid for May utilities 280
31 Owner withdrew cash for personal use 1,400
Check figures:
(2) Ending balances
Cash 42,780$
Expenses 5,110$
(3) Net income 5,990$
Total assets 44,670$
THE GRAHAM CO.
Transactions
Given Data P01-07A:
Student Name:
Class:
Assets =Liabilities + Equity
Accounts Office Office Elect. Accounts Common
Date Cash Receivable Supplies Equip. Equip. Payable Stock Dividends Revenues Expenses
Dec. 1 65,000$ 65,000$
2 (1,000) (1,000)$
Bal. 64,000 65,000 – – (1,000)
3 (4,800) 13,000$ 8,200$
Bal. 59,200 13,000 8,200 65,000 – – (1,000)
5 (800) 800$
Bal. 58,400 800 13,000 8,200 65,000 – – (1,000)
61,200 1,200$
Bal. 59,600 800 13,000 8,200 65,000 – 1,200 (1,000)
82,530$ 2,530
Bal. 59,600 800 2,530 13,000 10,730 65,000 – 1,200 (1,000)
15 5,000$ 5,000
Bal. 59,600 5,000 800 2,530 13,000 10,730 65,000 – 6,200 (1,000)
18 350 350
Bal. 59,600 5,000 1,150 2,530 13,000 11,080 65,000 – 6,200 (1,000)
20 (2,530) (2,530)
Bal. 57,070 5,000 1,150 2,530 13,000 8,550 65,000 – 6,200 (1,000)
24 900 900
Bal. 57,070 5,900 1,150 2,530 13,000 8,550 65,000 – 7,100 (1,000)
28 5,000 (5,000)
Bal. 62,070 900 1,150 2,530 13,000 8,550 65,000 – 7,100 (1,000)
29 (1,400) (1,400)
Bal. 60,670 900 1,150 2,530 13,000 8,550 65,000 – 7,100 (2,400)
30 (540) (540)
Bal. 60,130 900 1,150 2,530 13,000 8,550 65,000 – 7,100 (2,940)
31 (950) (950)$
Bal. 59,180$ 900$ 1,150$ 2,530$ 13,000$ 8,550$ 65,000$ (950)$ 7,100$ (2,940)$
Correct! Correct! Correct! Correct! Correct! Correct! Correct! Correct! Correct! Correct!
Problem 01-08A
McGraw-Hill/Irwin
Instructor
ANDER ELECTRIC
Student Name:
Class:
Problem 01-08A
McGraw-Hill/Irwin
Instructor
7,100$
1,000$
1,400
540
2,940
4,160$
Correct!
–$
4,160
4,160
950
3,210$
Correct!
Assets Liabilities
$59,180 8,550$
900
1,150
2,530 65,000$
13,000 3,210
$76,760 76,760$
Correct! Correct!
ANDER ELECTRIC
Income Statement
Total expenses
For the Month Ended December 31
Statement of Retained Earnings
For the Month Ended December 31
ANDER ELECTRIC
Utilities expense
Net income
Retained earnings, December 1
Revenues
Electrical fees earned
Expenses
Rent expense
Salaries expense
Add: Net income
Less: Withdrawals by owner
Retained earnings, December 31
Cash
Accounts receivable
ANDER ELECTRIC
Owner’s Equity
Common stock
Total liabilities and equity
Office supplies
Office equipment
Electrical equipment
Total assets
Accounts payable
Retained earnings
December 31
Balance Sheet
Student Name:
Class:
Problem 01-08A
McGraw-Hill/Irwin
Instructor
6,200$
(1,000)
(800)
(540)
(1,400)
2,460$ «- Correct!
(2,530)
(4,800)
(7,330) «- Correct!
65,000
(950)
64,050 «- Correct!
59,180$
–
59,180$
Correct!
Part 4:
ANDER ELECTRIC
For Month Ended December 31
Statement of Cash Flows
Cash flows from investing activities
Purchase of office equipment
Cash paid for rent
Cash paid for supplies
Cash flows from operating activities
Cash received from customers
Net increase in cash
Cash balance, December 1
Cash balance, December 31
Purchase of electrical equipment
Net cash used by investing activities
Cash flows from financing activities
Investments by stockholder
Dividends to stockholder
Net cash provided by financing activities
Cash paid for utilities
Cash paid to employees
Net cash provided by operating activities
If the December 1 owner investment had been $49,000 cash instead of $65,000 and the $16,000 difference was borrowed by
the company from a bank, then: (a) Total stockholder investments during this period, as well as the ending equity, would be
$16,000 lower, (b) Total liabilities would be $16,000 greater, and (c) Total assets would remain the same.
Assume that the owner investment transaction on December 1 was $49,000 cash instead of $65,000
and that Ander Electric obtained another $16,000 in cash by borrowing it from the bank. Explain the
effect of this change on total assets, total liabilities, and total equity.
May
165,000$
21,000
313,000
4,800
8,200
5800
61,200
82,530
15 5,000
18 350
20 2,530
24 900
28 5,000
29 1,400
30 540
31 950
Check figures:
(2) Ending balances
Cash 59,180$
Accounts Payable 8,550$
(3) Net income 4,160$
Total assets 76,760$
Purchased office supplies for cash
Given Data P01-08A:
Billed client for work completed
Received for December 15th work
Paid assistant’s salary
Paid monthly utility bill
Paid cash dividends to owner
Balance due in 30 days
Office equipment purchased on credit
Completed work on credit
Office supplies purchased on credit
Cash paid for office equipment purchased December 8
Transactions
ANDER ELECTRIC
Transferred into business account in exchange for stock
Cash paid for month’s rent
Total paid for electrical equipment
Cash paid at time of purchase
Amount collected for work completed