# Accounting Chapter 1 Homework A Framework for Financial Accounting

Page Count
9 pages
Word Count
884 words
Book Title
Financial Accounting Connect Access Code 4th Edition
Authors
David Spiceland, Don Herrmann, Wayne Thomas
Exercise 1-17 (LO 1-3)
(\$ in billions)
Total change
in cash
=
Operating
cash flows
+
Investing
cash flows
+
Financing
cash flows
1.
Total change
in cash
=
Operating
cash flows
+
Investing
cash flows
+
Financing
cash flows
2.
Total change
in cash
=
Operating
cash flows
+
Investing
cash flows
+
Financing
cash flows
3.
Total change
in cash
=
Operating
cash flows
+
Investing
cash flows
+
Financing
cash flows
4.
Total change
in cash
=
Operating
cash flows
+
Investing
cash flows
+
Financing
cash flows
5.
Total change
=
Operating
+
Investing
+
Financing
Exercise 1-18 (LO 1-5)
1.
Exercise 1-19 (LO 1-7)
1.
2.
Exercise 1-20 (LO 1-7)
1.
b.
Chapter 1 - A Framework for Financial Accounting
PROBLEMS: SET A
Problem 1-1A (LO 1-2)
activity
Transactions
1.
Financing
Pay amount owed to the bank for previous borrowing
2.
Operating
Pay utility costs
Problem 1-2A (LO 1-2)
Account classifications
Account Names
1.
Stockholders’ equity
Common stock
Problem 1-3A (LO 1-3)
Longhorn Corporation
Income Statement
Service revenue
\$67,700
Expenses:
Cost of goods sold
53,400
Longhorn Corporation
Statement of Stockholders’ Equity
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Problem 1-3A (concluded)
Longhorn Corporation
Balance Sheet
Assets
Liabilities
Cash
\$ 1,200
Accounts payable
\$ 4,400
Stockholders’ Equity
Common stock
44,000
Retained earnings
24,400
Chapter 1 - A Framework for Financial Accounting
Problem 1-4A (LO 1-3)
(Suggested order of calculation)
On the statement of stockholders’ equity,
\$7,000 + (c) \$3,000 = \$10,000
Problem 1-5A (LO 1-3)
Cornhusker Company
Income Statement
For the year ended December 31, 2018
Service revenues
\$37,000
Expenses:
Rent
7,000
Utilities
4,900
Cornhusker Company
Statement of Stockholders’ Equity
For the year ended December 31, 2018
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Beginning balance (Jan. 1)
\$16,000
\$7,300
\$23,300
Problem 1-5A (concluded)
Cornhusker Company
Balance Sheet
December 31, 2018
Assets
Liabilities
Cash
\$ 4,800
Accounts payable
\$ 2,200
Stockholders’ Equity
Common stock
16,000
Retained earnings
12,400
Problem 1-6A (LO 1-7)
Assumption violated
1.
Going concern
Problem 1-7A (LO 1-7)
1.
d.
2.
b.
Chapter 1 - A Framework for Financial Accounting
PROBLEMS: SET B
Problem 1-1B (LO 1-2)
activity
Transactions
1.
Operating
2.
Financing
Pay dividends to stockholders
Chapter 1 - A Framework for Financial Accounting
Problem 1-2B (LO 1-2)
Account classifications
Account Names
1.
Asset
Cash
Chapter 1 - A Framework for Financial Accounting
Problem 1-3B (LO 1-3)
Gator Investments
Income Statement
Service revenue
\$127,600
Expenses:
33,500
Gator Investments
Statement of Stockholders’ Equity
Common
Stock
Retained
Earnings
Total
Stockholders’
Equity
Beginning balance
\$100,000
\$30,300
\$130,300
Problem 1-3B (concluded)
Gator Investments
Balance Sheet
Assets
Liabilities
Cash
\$ 5,500
Accounts payable
\$ 6,400
Stockholders’ Equity
Common stock
111,000
Retained earnings
35,100

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