Exercise Set A
Exercise Set A
EA 1. For each independent situation below, calculate the missing values.
| Revenues – | Expenses + | Gains – | Losses = | Net Income/(Loss) |
| $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. For each independent situation below, calculate the missing values for owner’s equity
| Beginning Balance + | Investments – | Distributions = | Ending Balance |
| $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. For each independent situation below, calculate the missing values.
| Assets – | Liabilities = | Owner’s Equity |
| $32,000 | $17,000 | ? |
| $168,700 | ? | $146,300 |
| $17,500 | $16,830 | ? |
| ? | $323,000 | $330,700 |
| $382,170 | ? | $125,270 |
EA 4. For 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. For 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. For 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. Forest 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 Dec. 1 | $4,250 |
EA 8. Here are facts for the Hudson Roofing Company for December.
| Hudson Alexander. Capital Dec 1 | $175,300 |
| Dec. revenue | $56,400 |
| Dec. expenses | $59,800 |
Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?
EA 9. Prepare 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. Prepare 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 Oct. 1 | $56,00 |
| Net loss Oct. 2018 | $7,800 |
| Owner Investments | $1,500 |
| Wages Payable | $3,250 |
| Supplies expense | $750 |
| Owner withdrawals | $100 |
EA 11. Prepare 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 Mar. 1 | $17,300 |
| Inventory | $8,230 |
| Wages payable | $2,150 |
| Sales | $13,600 |
| Product expenses | $8,200 |
| Ginger Ale, Capital Mar. 31 | $22,700 |
| Equipment | $7,300 |
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