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Principles of Accounting, Volume 1: Financial Accounting

Exercise Set A

Principles of Accounting, Volume 1: Financial AccountingExercise Set A
EA 1.

LO 2.1For each independent situation below, calculate the missing values.

Revenues minus Expenses plus Gains minus Losses equals Net Income/(Loss), respectively: $1,250, 1,100, 125, 75, ?; ?, 100,755, 0, 1,550 (485); 75,560, 68,600, ?, 1,675, 6,485; 26,390, ?, 320, 600, (990); 872,300, 856,995, 11,000, ?, 26,305.
EA 2.

LO 2.1For each independent situation below, calculate the missing values for owner’s equity

Beginning Balance plus Investments minus Distributions equals Ending Balance, respectively: $0, 22,750, 12,000, ?; 17,630, ?, 7,500, 66,330; ?, 75,300, 163,200, 138,900; 0, 175,300, ?, 159,530; 85,800, 62,750, 43,900, ?.
EA 3.

LO 2.1For each independent situation below, calculate the missing values.

Assets minus Liabilities equals Owner’s Equity, respectively: $32,000, 17,000, ?; 168,700, ?, 146,300; 17,500, 16,830, ?; ?, 232,000, 330,700; 382,170, ?, 125,270.
EA 4.

LO 2.1For each independent situation below, place an (X) by the transactions that would be included in the statement of cash flows.

 
Transaction Included
Sold items on account  
Wrote check to pay utilities  
Received cash investment by owner  
Recorded wages owed to employees  
Received bill for advertising  
Table 2.3
EA 5.

LO 2.2For each of the following items, identify whether the item is considered current or noncurrent, and explain why.

 
Item Current or Noncurrent?
Cash  
Inventory  
Machines  
Trademarks  
Accounts Payable  
Wages Payable  
Owner, Capital  
Accounts Receivable  
Table 2.5
EA 6.

LO 2.2For the items listed below, indicate how the item affects equity (increase, decrease, or no impact.

 
Item Increase? Decrease? or No Impact?
Expenses  
Assets  
Gains  
Liabilities  
Dividends  
Table 2.6
EA 7.

LO 2.2Forest Company had the following transactions during the month of December. What is the December 31 cash balance?

Cash sales $3,250, Payments for inventory 1,760, Investments by owners 3,000, Supplies used 175, Cash withdrawals 260, Inventory received 2,500, Wages paid 2,390, Cash balance December 1, 4,250.
EA 8.

LO 2.2Here are facts for the Hudson Roofing Company for December.

Hudson Alexander, Capital December 1 $175,300, December Revenue 56,400, December Expenses 59,800.

Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?

EA 9.

LO 2.3Prepare an income statement using the following information for DL Enterprises for the month of July 2018.

Sales revenue $62,500, Rental revenue 15,300, Product expense 52,200, Wages expense 18,900, Owner investment 12,000, Equipment purchases 56,000, Utilities expense 1,800, Taxes expense 400.
EA 10.

LO 2.3Prepare a statement of owner’s equity using the information provided for Pirate Landing for the month of October 2018.

Cash $14,500, Pirate Pete capital October 1 56,000, Net loss October 2017 7,800, Owner investments 1,500, Wages payable 3,250, Supplies expense 750, Owner withdrawals 100.
EA 11.

LO 2.3Prepare a balance sheet using the following information for the Ginger Company as of March 31, 2019.

Accounts payable $1,730, Cash 11,050, Ginger Ale capital March 1 17,300, Inventory 8,230, Wages payable 2,150, Sales 13,600, Product expenses 8,200, Ginger Ale capital March 31 22,700, Equipment 7,300.
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