(a) SOLKI’S REPAIR SHOP
Owner’s Equity
Cash
+
Accounts
Receivable
+
Supplies
+
Equipment
=
Accounts
Payable
+
Owner’s
Capital
–
Owner’s
Drawings
+
Revenues
–
Expenses
1.
2.
3.
4.
5.
+$10,000
+ 10,000
+ –5,000
+ 5,000
+ –400
+ 4,600
+ –500
+ 4,100
+000,000
+ 4,100
+
+
+$500
+ 500
+0000
+ 500
+
+
+
+
+$5,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
+00,000
+ 5,000
=
=
=
=
=
+$250
+ 250
+
+
+
+
+$10,000
+ 10,000
+000,000
+ 10,000
+
10,000
+000,000
10,000
+
10,000
–$400
–400
–400
–250
–650
PROBLEM 1-1B
CHAPTER 1
SOLUTIONS TO PROBLEMS: SET B
PROBLEM 1-1B (Continued)
(b) Service revenue ($6,100 + $750) ………………………. $6,850
Expenses
Salaries and wages ………………………………….. $2,000
(a) PETER NIMMER, VETERINARIAN
Owner’s Equity
Cash
+
Accounts
Receivable
+
Supplies
+
Equipment
=
Notes
Payable
+
Accounts
Payable
+
Owner’s
Capital
–
Owner’s
Drawings
+
Revenues
–
Expenses
Bal.
1.
2.
6.
$ 9,000
–2,900
6,100
+1,300
8,000
–3,050
4,950
+
+
+
+
$1,700
00,000
1,700
–1,300
5,700
00,000
5,700
+
+
+
+
$600
0000
600
0000
600
0000
600
+
+
+
+
$ 6,000
000,000
6,000
000,000
8,100
000,000
8,100
=
=
=
=
$3,600
–2,900
700
00,000
2,000
00,000
2,000
+
+
+
+
$13,700
000,000
13,700
000,000
13,700
13,700
–1,100
–1,100
7,800
7,800
–$1,700
–900
–450
–3,050
PROBLEM 1-2B (Continued)
(b) PETER NIMMER, VETERINARIAN
Income Statement
For the Month Ended September 30, 2017
Revenues
Service revenue………………………………………….. $7,800
Expenses
Salaries and wages expense ……………………….. $1,700
Rent expense ……………………………………………… 900
PETER NIMMER, VETERINARIAN
Owner’s Equity Statement
For the Month Ended September 30, 2017
Owner’s capital, September 1 ………………………………………… $13,700
Add: Net income …………………………………………………………. 4,580
PROBLEM 1-2B (Continued)
PETER NIMMER, VETERINARIAN
Balance Sheet
September 30, 2017
Assets
Cash …………………………………………………………………………….. $14,950
Accounts receivable ……………………………………………………… 5,700
Liabilities and Owner’s Equity
Liabilities
Notes payable ………………………………………………………… $10,000
Accounts payable ………………………………………………….. 2,170
PROBLEM 1-3B
(a) RC FLYING SCHOOL
Income Statement
For the Month Ended May 31, 2017
Revenues
Service revenue…………………………………….. $8,100
Expenses
Gasoline expense ………………………………….. $2,500
Rent expense ………………………………………… 1,200
RC FLYING SCHOOL
Owner’s Equity Statement
For the Month Ended May 31, 2017
Owner’s capital, May 1 …………………………………. $ 0
Add: Investments ………………………………………. $40,000
RC FLYING SCHOOL
Balance Sheet
May 31, 2017
Assets
Cash …………………………………………………………………………….. $ 3,400
Accounts receivable ……………………………………………………… 4,900
PROBLEM 1-3B (Continued)
RC FLYING SCHOOL
Balance Sheet (Continued)
May 31, 2017
Liabilities and Owner’s Equity
Liabilities
Notes payable ………………………………………………………… $30,000
Accounts payable ………………………………………………….. 800
(b) RC FLYING SCHOOL
Income Statement
For the Month Ended May 31, 2017
Revenues
Service revenue ($8,100 + $900) …………….. $9,000
Expenses
Gasoline expense ($2,500 + $1,500) ………… $4,000
Rent expense ………………………………………… 1,200
RC FLYING SCHOOL
Owner’s Equity Statement
For the Month Ended May 31, 2017
Owner’s capital, May 1 …………………………………. $ 0
Add: Investments ………………………………………. $40,000
Net income ……………………………………….. 2,400 42,400
PROBLEM 1-4B
(a) LULJAK DELIVERIES
Assets
=
Liabilities
+
Owner’s Equity
Date
Cash
+
Accounts
Receivable
+
Supplies
+
Equip-
ment
=
Notes
Payable
+
Accounts
Payable
+
Owner’s
Capital
–
Owner’s
Drawings
+
Revenues
–
Expenses
June 1
2
3
5
9
12
15
17
$10,000)
(2,000)
(500)
(200)
1,250)
($4,400)
(1,250)
$150
$12,000
($10,000
)
($150)
( 200)
($10,000)
( )
($200)
$4,400
($500)
(200)
PROBLEM 1-4B (Continued)
(b) LULJAK DELIVERIES
Income Statement
For the Month Ended June 30, 2017
Revenues
Service revenue ($4,400 + $1,300)………………. $5,700
Expenses
Salaries and wages expense ……………………… $1,000
(c) LULJAK DELIVERIES
Balance Sheet
June 30, 2017
Assets
Cash …………………………………………………………………………….. $ 7,800
Accounts receivable ……………………………………………………… 3,150
Supplies ………………………………………………………………………. 150
Liabilities and Owner’s Equity
Liabilities
Notes payable ………………………………………………………… $ 9,400
Accounts payable ………………………………………………….. 150
PROBLEM 1-5B
(a)
Luo
Company
Foster
Company
Usher
Company
Merritt
Company
(a)
$ 45,000
(d)
$50,000
(g)
$120,000
(j)
$ 80,000
(b) FOSTER COMPANY
Owner’s Equity Statement
For the Year Ended December 31, 2017
Owner’s capital, January 1 ………………………….. $ 60,000
Add: Investment ……………………………………….. $15,000
(c) The sequence of preparing financial statements is income statement,
owner’s equity statement, and balance sheet. The interrelationship of