SOLUTIONS MANUAL
** All Chapters included
** Review Questions
** Exercises & Problems
,Table of Contents are given below
1. Accounting and the Business Environment
2. Recording Business Transactions
3. The Adjusting Process
4. Completing the Accounting Cycle
5. Merchandising Operations
6. Merchandising Inventory
7. Accounting Information Systems
8. Internal Control and Cash
9. Receivables
10. Plant Assets, Natural Resources, and Intangibles
11. Current Liabilities and Payroll
12. Partnerships
13. Stockholders’ Equity
14. Long-Term Liabilities
15. Investments
16. The Statement of Cash Flows
17. Financial Statement Analysis
, Chapter F:1
Accounting and the Business Environment
Try Its!
TI-F:1-1
1. e 2. a 3. d 4. b 5. f 6. c
TI-F:1-2
1. d 2. f 3. i 4. c 5. a 6. h 7. b 8. g 9. e
TI-F:1-3
ASSETS = LIABILITIES + EQUITY
Owner’s Owner’s
+ – + Revenues – Expenses
Assets = Liabilities Capital Withdrawals
$71,288 = $2,260 + ? – $14,420 + $53,085 – $28,675
$71,288 = $2,260 + $59,038 – $14,420 + $53,085 – $28,675
TI-F:1-4
ASSETS = LIABILITIES + EQUITY
Accounts Accounts Lawlor, Lawlor, Service Gas
Date Cash + + Equipment = + – + –
Receivable Payable Capital Withdrawals Revenue Expense
May 1 +1,700 = +1,700
3 +1,440 = +1,440
Bal. $1,700 + $1,440 = $1,440 + $1,700
5 +200 = +200
Bal. $1,700 + $200 + $1,440 = $1,440 + $1,700 + $200
17 −60 −60
Bal. $1,640 + $200 + $1,440 = $1,440 + $1,700 + $200 − $60
28 −300 = −300
Bal. $1,340 + $200 + $1,440 = $1,440 + $1,700 – $300 + $200 – $60
1-1
, TI-F:1-5
DR PAINTING
Income Statement
Month ended March 31, 20x1
Revenue:
Service Revenue $ 7,000
Expenses:
Salaries Expense $ 800
Utilities Expense 200
Total Expenses 1,000
Net Income $ 6,000
DR PAINTING
Statement of Owner’s Equity
Month ended March 31, 20x1
Richardson, Capital, March 1, 20x1 $ 0
Owner contribution 40,000
Net income for the month 6,000
46,000
Owner withdrawal (1,500)
Richardson, Capital, March 31, 20x1 $ 44,500
DR PAINTING
Balance Sheet
March 31, 20x1
Assets Liabilities
Cash $ 22,300 Accounts Payable $ 1,000
Accounts Receivable 1,400
Supplies 1,800 Owner’s Equity
Truck 20,000 Richardson, Capital 44,500
Total Assets $ 45,500 Total Liabilities and Owner’s Equity $ 45,500
TI-F:1-6
Return on assets = Net income / Average total assets
= $5,000 / (($76,000 + $80,250) / 2)
= $5,000 / $78,125
= 6.4%
1-2
** All Chapters included
** Review Questions
** Exercises & Problems
,Table of Contents are given below
1. Accounting and the Business Environment
2. Recording Business Transactions
3. The Adjusting Process
4. Completing the Accounting Cycle
5. Merchandising Operations
6. Merchandising Inventory
7. Accounting Information Systems
8. Internal Control and Cash
9. Receivables
10. Plant Assets, Natural Resources, and Intangibles
11. Current Liabilities and Payroll
12. Partnerships
13. Stockholders’ Equity
14. Long-Term Liabilities
15. Investments
16. The Statement of Cash Flows
17. Financial Statement Analysis
, Chapter F:1
Accounting and the Business Environment
Try Its!
TI-F:1-1
1. e 2. a 3. d 4. b 5. f 6. c
TI-F:1-2
1. d 2. f 3. i 4. c 5. a 6. h 7. b 8. g 9. e
TI-F:1-3
ASSETS = LIABILITIES + EQUITY
Owner’s Owner’s
+ – + Revenues – Expenses
Assets = Liabilities Capital Withdrawals
$71,288 = $2,260 + ? – $14,420 + $53,085 – $28,675
$71,288 = $2,260 + $59,038 – $14,420 + $53,085 – $28,675
TI-F:1-4
ASSETS = LIABILITIES + EQUITY
Accounts Accounts Lawlor, Lawlor, Service Gas
Date Cash + + Equipment = + – + –
Receivable Payable Capital Withdrawals Revenue Expense
May 1 +1,700 = +1,700
3 +1,440 = +1,440
Bal. $1,700 + $1,440 = $1,440 + $1,700
5 +200 = +200
Bal. $1,700 + $200 + $1,440 = $1,440 + $1,700 + $200
17 −60 −60
Bal. $1,640 + $200 + $1,440 = $1,440 + $1,700 + $200 − $60
28 −300 = −300
Bal. $1,340 + $200 + $1,440 = $1,440 + $1,700 – $300 + $200 – $60
1-1
, TI-F:1-5
DR PAINTING
Income Statement
Month ended March 31, 20x1
Revenue:
Service Revenue $ 7,000
Expenses:
Salaries Expense $ 800
Utilities Expense 200
Total Expenses 1,000
Net Income $ 6,000
DR PAINTING
Statement of Owner’s Equity
Month ended March 31, 20x1
Richardson, Capital, March 1, 20x1 $ 0
Owner contribution 40,000
Net income for the month 6,000
46,000
Owner withdrawal (1,500)
Richardson, Capital, March 31, 20x1 $ 44,500
DR PAINTING
Balance Sheet
March 31, 20x1
Assets Liabilities
Cash $ 22,300 Accounts Payable $ 1,000
Accounts Receivable 1,400
Supplies 1,800 Owner’s Equity
Truck 20,000 Richardson, Capital 44,500
Total Assets $ 45,500 Total Liabilities and Owner’s Equity $ 45,500
TI-F:1-6
Return on assets = Net income / Average total assets
= $5,000 / (($76,000 + $80,250) / 2)
= $5,000 / $78,125
= 6.4%
1-2
