Accounting Chapter 1 Homework These amounts are taken from the cash column of the spreadsheet in Part 2

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–3A (Concluded)

4. (Optional)

Cash flows from operating activities:

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

Kevin

Bosley,

Drawing

Auto

Exp.

Assets Owner’s Equity

Supplies

Accts.

Payable

Liabilities

Kevin

Bosley,

Capital

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–4A (Concluded)

2.

Sales commissions $36,750

Expenses:

Rent expense $4,000

Kevin Bosley, capital, October 1, 2014 $0

Investment on October 1, 2014 $18,000

Cash $38,500 Accounts payable $ 1,400

Assets Liabilities

SUNRISE REALTY

Income Statement

For the Month Ended October 31, 2014

SUNRISE REALTY

Statement of Owner’s Equity

For the Month Ended October 31, 2014

SUNRISE REALTY

Balance Sheet

October 31, 2014

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–5A

1. = +

Cash +++

=+Joel Palk, Capital

Supplies Land

Owner’s Equity

Accounts

Payable

Assets

Accounts

Receivable

Liabilities

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–5A (Continued)

2. = +

+++ =+ –

Bal. 45,000 93,000 7,000 75,000 40,000 180,000

Bal. 56,125 93,000 9,500 125,000 42,500 215,000

(f) – 22,800 – 22,800

Bal. 33,325 93,000 9,500 125,000 19,700 215,000

(g) + 84,750

Owner’s Equity

Accts.

PayableCash

Assets

Accts.

Rec.

Liabilities

Supplies Land

Joel Palk,

Capital

Joel Palk,

Drawing

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–5A (Continued)

+–––––––

Bal.

(a)

Bal.

(b)

Bal.

(c) + 32,125

Bal. 32,125

Owner’s 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

Joel Palk, capital, July 1, 2014 $180,000

Additional investment during July $35,000

Net income for July 63,775

D’LITE DRY CLEANERS

Income Statement

For the Month Ended July 31, 2014

D’LITE DRY CLEANERS

Statement of Owner’s Equity

For the Month Ended July 31, 2014

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

and payments to creditors** 42,800

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)

c. Dakota Rowe, capital, April 1, 2014, $0; Wolverine Realty was organized on

April 1, 2014.

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–1B

1. Assets = +

+ +=+ –+ –––– –

Bal. 52,550 2,700 1,700 50,000 13,800 – 5,000 – 2,500 – 1,300 – 1,150 – 300

(i) + 12,500 + 12,500

Misc.

Exp.

Rent

ExpenseCash

Amy

Austin,

Drawing

Supplies

Expense

Owner’s Equity

Accts.

Rec. Supplies

Accts.

Payable

Liabilities

Amy

Austin,

Capital

Fees

Earned

Salaries

Expense

Auto

Exp.

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–2B

1.

Fees earned $875,000

Expenses:

2.

Harper Borg, capital, May 1, 2013 $180,000

3.

Cash $146,000 Accounts payable $ 25,000

WILDERNESS TRAVEL SERVICE

Income Statement

For the Year Ended April 30, 2014

WILDERNESS TRAVEL SERVICE

Statement of Owner’s Equity

For the Year Ended April 30, 2014

WILDERNESS TRAVEL SERVICE

Balance Sheet

April 30, 2014

Assets Liabilities

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–3B

1.

Fees earned $125,000

Expenses:

Salaries expense $58,000

2.

Jose Loder, capital, August 1, 2014 $0

Investment on August 1, 2014 $75,000

3.

Cash $38,000 Accounts payable $ 3,000

Accounts receivable 33,000

Assets Liabilities

BRONCO CONSULTING

Income Statement

For the Month Ended August 31, 2014

BRONCO CONSULTING

Statement of Owner’s Equity

For the Month Ended August 31, 2014

BRONCO CONSULTING

Balance Sheet

August 31, 2014

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

Bal. 20,400 24,000 – 3,600

Sales

Comm.

Salaries

Exp.

Supplies

Exp.

Misc.

Exp.

Rent

Exp.Cash

Maria

Adams,

Drawing

Auto

Exp.

Assets Owner’s Equity

Supplies

Accts.

Payable

Liabilities

Maria

Adams,

Capital

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–4B (Concluded)

2.

Sales commissions $19,800

Expenses:

Rent expense $3,600

Maria Adams, capital, April 1, 2014 $0

Investment on April 1, 2014 $24,000

Cash $31,500 Accounts payable $ 450

Balance Sheet

April 30, 2014

Assets Liabilities

CUSTOM REALTY

Income Statement

For the Month Ended April 30, 2014

CUSTOM REALTY

Statement of Owner’s Equity

For the Month Ended April 30, 2014

CUSTOM REALTY

CHAPTER 1 Introduction to Accounting and Business

Prob. 1–5B

1. Liabilities +

Cash

Accounts

Receivable Supplies Land

Accounts

Payable +Beverly Zahn, Capital

+

Assets

+

=

Owner’s Equity