Accounting 8th Edition (International Version) Horngren, Harrison,
Bamber(Solutions Manual All Chapters, 100% Original Verified A+ Grade)
Chapter 1
Accounting and the Business
Environment
Short Exercises
(5 min.) S 1-1
Revenues increase owner’s equity by delivering goods or
services to customers.
Expenses decrease owner’s equity by using up assets or
increasing liabilities in order to deliver goods or services to
customers.
(5 min.) S 1-2
1. The banker is an external user of financial information.
2. The financial statement that would provide the best
information to answer the banker’s questions is the balance
sheet.
Chapter 1 Accounting and the Business Environment 1
, (5 – 10 min.) S 1-3
This organization is the Financial Accounting Standards Board.
(5 – 10 min.) S 1-4
Claire’s needs will best be met by organizing a corporation.
(5 – 10 min.) S 1-5
1. c 2. b 3. d 4. a
(5-10 min.) S 1-6
1. a. the entity concept
b. the cost principle
c. the stable-monetary unit concept
d. the reliability principle
2. Wendy Craven has $13,000 of equity in the business.
Assets = Liabilities + Owner’s Equity
Accounts Craven,
Cash + Furniture = Payable + Capital
$6,000 + $12,000 = $5,000 + $13,000
2 Accounting 8/e Solutions Manual
, (5 min.) S 1-7
Assets = Liabilities + Owner’s Equity
Cash Owner, Capital
(a) $420 = $420 Revenue
(b) − $135 = − $135 Expense
(5 min.) S 1-8
Monte Hall Gaming recorded no liability for the purchase of
land because the business paid for the land with cash. The
business has no debt—no liability—to make a future payment
for the land.
(5 min.) S 1-9
Cash: $ -0-
Total assets (accounts receivable): $2,400
Chapter 1 Accounting and the Business Environment 3
, (5 min.) S 1-10
1. The business recorded no revenue when it collected cash on
account because it recorded the revenue one month earlier,
when it was earned.
2.
Assets = Liabilities + Owner’s Equity
Cash + Accts. Owner, Capital
Rec.
(a) $300 = $300 Revenue
(b) $300 $-300 = 0 No effect
(10 min.) S 1-11
Smart Touch Learning
Balance Sheet
April 21, 2010
ASSETS LIABILITIES
Cash $11,900 Accounts payable $ 200
Accounts receivable 3,000
Office supplies 500 OWNER’S EQUITY
Land 20,000 Sheena Bright, 35,200
capital
Total liabilities and
Total assets $35,400 owner's equity $35,400
4 Accounting 8/e Solutions Manual
Bamber(Solutions Manual All Chapters, 100% Original Verified A+ Grade)
Chapter 1
Accounting and the Business
Environment
Short Exercises
(5 min.) S 1-1
Revenues increase owner’s equity by delivering goods or
services to customers.
Expenses decrease owner’s equity by using up assets or
increasing liabilities in order to deliver goods or services to
customers.
(5 min.) S 1-2
1. The banker is an external user of financial information.
2. The financial statement that would provide the best
information to answer the banker’s questions is the balance
sheet.
Chapter 1 Accounting and the Business Environment 1
, (5 – 10 min.) S 1-3
This organization is the Financial Accounting Standards Board.
(5 – 10 min.) S 1-4
Claire’s needs will best be met by organizing a corporation.
(5 – 10 min.) S 1-5
1. c 2. b 3. d 4. a
(5-10 min.) S 1-6
1. a. the entity concept
b. the cost principle
c. the stable-monetary unit concept
d. the reliability principle
2. Wendy Craven has $13,000 of equity in the business.
Assets = Liabilities + Owner’s Equity
Accounts Craven,
Cash + Furniture = Payable + Capital
$6,000 + $12,000 = $5,000 + $13,000
2 Accounting 8/e Solutions Manual
, (5 min.) S 1-7
Assets = Liabilities + Owner’s Equity
Cash Owner, Capital
(a) $420 = $420 Revenue
(b) − $135 = − $135 Expense
(5 min.) S 1-8
Monte Hall Gaming recorded no liability for the purchase of
land because the business paid for the land with cash. The
business has no debt—no liability—to make a future payment
for the land.
(5 min.) S 1-9
Cash: $ -0-
Total assets (accounts receivable): $2,400
Chapter 1 Accounting and the Business Environment 3
, (5 min.) S 1-10
1. The business recorded no revenue when it collected cash on
account because it recorded the revenue one month earlier,
when it was earned.
2.
Assets = Liabilities + Owner’s Equity
Cash + Accts. Owner, Capital
Rec.
(a) $300 = $300 Revenue
(b) $300 $-300 = 0 No effect
(10 min.) S 1-11
Smart Touch Learning
Balance Sheet
April 21, 2010
ASSETS LIABILITIES
Cash $11,900 Accounts payable $ 200
Accounts receivable 3,000
Office supplies 500 OWNER’S EQUITY
Land 20,000 Sheena Bright, 35,200
capital
Total liabilities and
Total assets $35,400 owner's equity $35,400
4 Accounting 8/e Solutions Manual
