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CHAPTER 1: EXERCISE 1-5 Asset Cash Equipment Supplies Accounts receivable
Liability Accounts payable Notes payable Salaries and wages payable
Stockholders’ Equity Common stock
EXERCISE 1-6 1. 2. 3. 4. 5. 6. 7. 8. 9.
Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and increase in liabilities. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and decrease in assets. Increase in liabilities and decrease in stockholders’ equity. Increase in assets and decrease in assets. Increase in assets and increase in stockholders’ equity.
EXERCISE 1-11 (a) Total assets (beginning of year) .......................................... Total liabilities (beginning of year) ...................................... Total stockholders’ equity (beginning of year) .................. $ 97,000 85,000 $ 12,000
(b) Total stockholders’ equity (end of year) ............................. Total stockholders’ equity (beginning of year) .................. Increase in stockholders’ equity.......................................... Total revenues ....................................................................... Total expenses ...................................................................... Net income ............................................................................. Increase in stockholders’ equity.................... Less: Net income ........................................... Add: Dividends .............................................. Additional investment .....................................
$ 40,000 12,000 $ 28,000 $215,000 175,000 $ 40,000 $ 28,000
$(40,000) 24,000)
(16,000) $ 12,000 $129,000 75,000 $ 54,000EXERCISE 1-11 (Continued) $130,000 75,000 $ 55,000 $100,000 55,000 $ 45,000 $ 55,000
(c) Total assets (beginning of year) ..........................................
Liability Accounts payable Notes payable Salaries and wages payable
Stockholders’ Equity Common stock
EXERCISE 1-6 1. 2. 3. 4. 5. 6. 7. 8. 9.
Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and increase in liabilities. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and decrease in assets. Increase in liabilities and decrease in stockholders’ equity. Increase in assets and decrease in assets. Increase in assets and increase in stockholders’ equity.
EXERCISE 1-11 (a) Total assets (beginning of year) .......................................... Total liabilities (beginning of year) ...................................... Total stockholders’ equity (beginning of year) .................. $ 97,000 85,000 $ 12,000
(b) Total stockholders’ equity (end of year) ............................. Total stockholders’ equity (beginning of year) .................. Increase in stockholders’ equity.......................................... Total revenues ....................................................................... Total expenses ...................................................................... Net income ............................................................................. Increase in stockholders’ equity.................... Less: Net income ........................................... Add: Dividends .............................................. Additional investment .....................................
$ 40,000 12,000 $ 28,000 $215,000 175,000 $ 40,000 $ 28,000
$(40,000) 24,000)
(16,000) $ 12,000 $129,000 75,000 $ 54,000EXERCISE 1-11 (Continued) $130,000 75,000 $ 55,000 $100,000 55,000 $ 45,000 $ 55,000
(c) Total assets (beginning of year) ..........................................