Exercise Set B
Exercise Set B
EB 1. For each independent situation below, calculate the missing values.
| Revenues – | Expenses + | Gains – | Losses = | Net Income/(Loss) |
| $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. For each independent situation below, calculate the missing values for Owner’s Equity.
| Beginning Balance + | Investments – | Distributions = | Ending Balance |
| $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. For each independent situation below, calculate the missing values.
| Assets – | Liabilities = | Owner’s Equity |
| $81,600 | $17,000 | ? |
| $430,185 | ? | $373,065 |
| $44,625 | $42,917 | ? |
| ? | $591,600 | $843,285 |
| $974,534 | ? | $319,439 |
EB 4. For 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. For 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. For 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. Gumbo 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 Dec. 31 | $9,869 |
EB 8. Here are facts for Hailey’s Collision Service for January.
| Hailey Shuster, Capital Jan. 1 | $61,355 |
| Jan. revenue | $23,240 |
| Jan. expenses | $20.930 |
Assuming no investments or withdrawals, what is the ending balance in the owners’ capital account?
EB 9. Prepare 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. Prepare 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 Sep. 1 | $197,120 |
| Net Income Sep. 2018 | $27,456 |
| Owner investments | $5,280 |
| Wages payable | $11,440 |
| Supplies expense | $2,640 |
| Owner withdraws | $352 |
EB 11. Prepare 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 Jan. 1 | $5,709 |
| Inventory | $2,716 |
| Wages payable | $710 |
| Sales | $4,488 |
| Product expenses | $2,706 |
| Mike Michael, Capital Jan. 31 | $7,491 |
| Equipment | $2,409 |
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