Solutions manual for Intermediate Accounting (volume 1) 13th Canadian edition

CHAPTER 0 Accounting Cycle Review SOLUTIONS TO BRIEF EXERCISES BRIEF EXERCISE 0.1 Assets Liabilities Shareholders’ Equity (a) (b) (c) + + – + NE NE NE + – LO 1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting BRIEF EXERCISE 0.2 Assets = Liabilities + Shareholders’ Equity Cash + Accounts Receivable + Supplies = Accounts Payable + Bonds Payable+ Common Shares + Retained Earnings (1) +$60,000 +$60,000 (2) –9,000 –$9,000 Paid div. (3) +13,000 –$13,000 (4) +$3,100 +$3,100 LO 1 BT: AP Difficulty: Medium TOT: 5 min. AACSB: Analytic AICPA FC: Reporting Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-2 BRIEF EXERCISE 0.3 Assets = Liabilities + Shareholders’ Equity Cash + Inventory +Equipment = Accounts Payable + Common Shares + Retained Earnings (1) -$286,176 +$286,176 (2) +137,590 +$137,590 Issued shares (3) +$68,480 +$68,480 LO 1 BT: AP Difficulty: Medium TOT: 3 min. AACSB: Analytic AICPA FC: Reporting BRIEF EXERCISE 0.4 Debit Effect Credit Effect Normal Balance (a) (b) (c) (d) (e) (f) Accounts Payable Advertising Expense Service Revenue Accounts Receivable Retained Earnings Dividends Decrease Increase Decrease Increase Decrease Increase Increase Decrease Increase Decrease Increase Decrease Credit Debit Credit Debit Credit Debit LO 2 BT: K Difficulty: Medium TOT: 4 min. AACSB: None AICPA FC: Reporting Copyright © 2022 John Wiley & Sons Canada, Ltd.. Kieso et al., Intermediate Accounting, 13Ce, Solutions Manual 0-3 BRIEF EXERCISE 0.5 Account Debited Account Credited June 1 2 3 12 Cash Equipment Rent Expense Accounts Receivable Common Shares Accounts Payable Cash Service Revenue LO 2 BT: C Difficulty: Medium TOT: 3 min. AACSB: None AICPA FC: Re