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CHAPTER 1 Introduction to Accounting and Business
Prob. 1–3A (Concluded)
4. (Optional)
Cash flows from operating activities:
Cash received from customers $110,000
RELIANCE FINANCIAL SERVICES
Statement of Cash Flows
For the Month Ended July 31, 2014
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4A
1. =+
+=+ – + –––– –
(a) + 18,000 + 18,000
(b) + 3,200 + 3,200
Sales
Comm.
Salaries
Exp.
Supplies
Exp.
Misc.
Exp.
Rent
Exp.Cash Dividends
Auto
Exp.
Assets Stockholders’ Equity
Supplies
Accts.
Payable
Liabilities
Capital
Stock
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4A (Concluded)
2.
Sales commissions $36,750
Expenses:
Rent expense $4,000
Retained earnings, October 1, 2014 $0
Cash $38,500 Accounts payable $ 1,400
Supplies 1,550
Balance Sheet
October 31, 2014
Assets Liabilities
SUNRISE REALTY
Income Statement
For the Month Ended October 31, 2014
SUNRISE REALTY
Retained Earnings Statement
For the Month Ended October 31, 2014
SUNRISE REALTY
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A
1. = Liabilities +
Cash +
Accounts
Receivable + Supplies + Land =
Accounts
Payable +
Capital
Stock +
Retained
Earnings
Assets
Stockholders’ Equity
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Continued)
2. = +
+++=+
Capital
Stock +–
Bal. 45,000 93,000 7,000 75,000 40,000 60,000 0
(d) – 6,000
Bal. 56,125 93,000 7,000 125,000 40,000 95,000 0
Bal. 33,325 177,750 9,500 125,000 49,200 95,000 0
(i) – 14,000
Bal. 19,325 177,750 9,500 125,000 49,200 95,000 0
Accts.
Payable
Cash
Assets
Accts.
Rec.
Liabilities
Supplies Land Dividends
Stockholders’ Equity
120,000
120,000
120,000
Retained
Earnings
120,000
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Continued)
+–––––––
Bal.
(a)
Bal.
(b)
(i) – 7,500 – 2,500 – 1,300 – 2,700
Bal. 116,875 – 29,500 – 7,500 – 6,000 – 2,500 – 1,300 – 2,700
Stockholders’ Equity (Continued)
Utilities
Exp.
Supplies
Exp.
Dry
Cleaning
Revenue
Dry
Cleaning
Exp.
Wages
Exp.
Rent
Exp.
Truck
Exp.
Misc.
Exp.
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Continued)
3.
Dry cleaning revenue $116,875
Expenses:
Dry cleaning expense $29,500
Retained earnings, July 1, 2014 $120,000
Net income for July $63,775
Cash $ 95,325 Accounts payable $ 49,200
Accounts receivable 89,750
D'LITE DRY CLEANERS
Income Statement
For the Month Ended July 31, 2014
D'LITE DRY CLEANERS
Retained Earnings Statement
For the Month Ended July 31, 2014
D'LITE DRY CLEANERS
Balance Sheet
July 31, 2014
Assets Liabilities
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5A (Concluded)
4. (Optional)
Cash flows from operating activities:
Cash received from customers* $120,125
Deduct cash payments for expenses
D'LITE DRY CLEANERS
Statement of Cash Flows
For the Month Ended July 31, 2014
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–6A
a. Fees earned, $750,000 ($275,000 + $475,000)
b. Supplies expense, $30,000 ($475,000 – $300,000 – $100,000 – $20,000 – $25,000)
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–1B
1. Assets = +
+ +=+ – + –––– –
(a) + 50,000 + 50,000
(b) + 4,000 + 4,000
2. Stockholders’ equity is the right of stockholders (owners) to the assets of the business. These rights are increased by issuing capital stock
and decreased by dividends and expenses.
Misc.
Exp.
Rent
ExpenseCash Dividends
Supplies
Expense
Stockholders’ Equity
Accts.
Rec. Supplies
Accts.
Payable
Liabilities
Capital
Stock
Fees
Earned
Salaries
Expense
Auto
Exp.
1.
Fees earned $875,000
Expenses:
Wages expense $525,000
2.
Retained earnings, May 1, 2013 $145,000
3.
Cash $146,000 Accounts payable $ 25,000
Accounts receivable 210,000
Assets Liabilities
WILDERNESS TRAVEL SERVICE
Income Statement
For the Year Ended April 30, 2014
WILDERNESS TRAVEL SERVICE
Retained Earnings Statement
For the Year Ended April 30, 2014
WILDERNESS TRAVEL SERVICE
Balance Sheet
April 30, 2014
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–3B
1.
Fees earned $125,000
Expenses:
Salaries expense $58,000
2.
Retained earnings, August 1, 2014 $0
3.
Cash $48,000 Accounts payable $ 3,000
Accounts receivable 33,000
Balance Sheet
August 31, 2014
Assets Liabilities
BRONCO CONSULTING
Income Statement
For the Month Ended August 31, 2014
BRONCO CONSULTING
Retained Earnings Statement
For the Month Ended August 31, 2014
BRONCO CONSULTING
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–3B (Concluded)
4. (Optional)
Cash flows from operating activities:
Cash received from customers $ 92,000
BRONCO CONSULTING
Statement of Cash Flows
For the Month Ended August 31, 2014
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4B
1. =+
+=+ – + –––– –
(a) + 24,000 + 24,000
(b) – 3,600 – 3,600
Sales
Comm.
Salaries
Exp.
Supplies
Exp.
Misc.
Exp.
Rent
Exp.Cash Dividends
Auto
Exp.
Assets Stockholders’ Equity
Supplies
Accts.
Payable
Liabilities
Capital
Stock
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–4B (Concluded)
2.
Sales commissions $19,800
Expenses:
Rent expense $3,600
Retained earnings, April 1, 2014 $0
Net income for April $10,850
Cash $31,500 Accounts payable $ 450
Supplies 300
Capital stock $24,000
Stockholders’ Equity
CUSTOM REALTY
Income Statement
For the Month Ended April 30, 2014
CUSTOM REALTY
Retained Earnings Statement
For the Month Ended April 30, 2014
CUSTOM REALTY
Balance Sheet
April 30, 2014
Assets Liabilities
CHAPTER 1 Introduction to Accounting and Business
Prob. 1–5B
1. = Liabilities +
Cash +
Accounts
Receivable +Supplies +Land =
Accounts
Payable +
Capital
Stock +
Retained
Earnings
Assets
Stockholders’ Equity
