Accounting Lecture1
Essay by Cat9707 • September 9, 2017 • Coursework • 3,731 Words (15 Pages) • 958 Views
Ch01
PE 1–1A
$345,000. Under the cost concept, the land should be recorded at the cost
to Integrity Repair Service.
PE 1–3A
(2) Asset (Cash) decreases by $3,750;
Liability (Accounts Payable) decreases by $3,750.
(3) Asset (Accounts Receivable) increases by $22,400;
Revenue (Delivery Service Fees) increases by $22,400.
(4) Asset (Cash) increases by $11,300;
Asset (Accounts Receivable) decreases by $11,300.
(5) Asset (Cash) decreases by $6,000;
Asset (Gates Deeter, Drawing) increases by $6,000.
PE 1–4A
SUNSET TRAVEL SERVICE
Income Statement
For the Year Ended April 30, 2014
Fees earned $1,673,000
Expenses:
Wages expense $660,000
Office expense 488,000
Miscellaneous expense 34,000
Total expenses 1,182,000
Net income $ 491,000
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PE 1–5A
SUNSET TRAVEL SERVICE
Statement of Owner’s Equity
For the Year Ended April 30, 2014
Craig Daws, capital, May 1, 2013 $300,000
Additional investment by owner during year $ 75,000
Net income for the year 491,000
$566,000
Less withdrawals 66,000
Increase in owner’s equity 500,000
Craig Daws, capital, April 30, 2014 $800,000
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PE 1–6A
SUNSET TRAVEL SERVICE
Balance Sheet
April 30, 2014
Cash $274,000 Accounts payable $ 61,000
Accounts receivable 124,000
Supplies 13,000
Land 450,000 Craig Daws, capital 800,000
Total liabilities and
Total assets $861,000 owner’s equity $861,000
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Ex. 1–13
a. (1) Provided catering services for cash, $33,000.
(2) Purchase of land for cash, $20,000.
(3) Payment of cash for expenses, $24,000.
(4) Purchase of supplies on account, $1,000.
(5) Withdrawal of cash by owner, $3,000.
(6) Payment of cash to creditors, $6,000.
(7) Recognition of cost of supplies used, $1,800.
b. – $20,000 ($10,000 – $30,000)
c. $4,200 (–$3,000 + $33,000 – $25,800)
d. $7,200 ($33,000 – $25,800)
e. $4,200 ($7,200 – $3,000)
Ex. 1–14
No. It would be incorrect to say that the business had incurred a net loss of
$8,000. The excess of the withdrawals over the net income for the period is a
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