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Principles of Accounting, Volume 1: Financial Accounting

Exercise Set B

Principles of Accounting, Volume 1: Financial AccountingExercise Set B
EB 1.

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

Revenues minus Expenses plus Gains minus Losses equals Net Income/(Loss), respectively: $1,813, 1,595, 181, 109, ?; ?, 146,095, 0, 2,248, (703); 109,562, 99,470, ?, 2,429, 9,403; 38,266, ?, 464, 870, (1,436); 1,264,835, 1,242,643, 15,950, ?, 38,142.
EB 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, 14,333, 7,560, ?; 11,107, ?, 4,725, 41,788; ?, 47,439, 102,816, 87,507; 0, 110,439, ? 100,504; 54,054, 39,533, 27,657, ?.
EB 3.

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

Assets minus Liabilities equals Owner’s Equity, respectively: $81,600, 17,000, ?; 430,185, ?, 373,065; 44,625, 42,917, ?; ?, 591,600, 843,285; 974,534, ?, 319,439.
EB 4.

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

 
Transaction Included
Purchased supplies with check  
Received inventory (a bill was included)  
Paid cash to owner for withdrawal  
Gave cash donation to local charity  
Received bill for utilities  
Table 2.4
EB 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?
Inventory  
Buildings  
Accounts Receivable  
Cash  
Trademarks  
Accounts Payable  
Wages Payable  
Common Stock  
Table 2.7
EB 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?
Revenues  
Gains  
Losses  
Drawings  
Investments  
Table 2.8
EB 7.

LO 2.2Gumbo Company had the following transactions during the month of December. What was the December 1 cash balance?

Dividends paid $221, Credit sales 149, Payments for equipment 1,496, Taxes paid 2,032, Common stock sold 2,550, Inventory received 2,125, Cash sales 2,763, Cash balance December 31 9,869.
EB 8.

LO 2.2Here are facts for Hailey’s Collision Service for January.

Hailey Shusher, Capital January 1 $61,355, January Revenue 23,240, January Expenses 20,930.

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

EB 9.

LO 2.3Prepare an income statement using the following information for CK Company for the month of February 2019.

Sales revenue $26,250, Rental revenue 6,426, Product expense 21,924, Wages expense 7,938, Owner investment 5,040, Equipment purchases 23,520, Utilities expense 756, Taxes expense 168.
EB 10.

LO 2.3Prepare a statement of owner’s equity using the following information for the Can Due Shop for the month of September 2018.

Cash $51,040, Steve due capital September 197,120, Net income September 2018 27,456, Owner investments 5,280, Wages payable 11,440, Supplies expense 2,640, Owner withdrawals 352.
EB 11.

LO 2.3Prepare a balance sheet using the following information for Mike’s Consulting as of January 31, 2019.

Accounts payable $570, Cash 3,646, Mike Michael capital January 1 5,709, Inventory 2,716, Wages payable 710, Sales 4,488, Product expenses 2,706, Mike Michael capital January 31 7,491, Equipment 2,409.
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