SuggestedSolutionChapter11.Effectontheaccountingequation(1)(2)(3)(4)(5)(6)(a)Increaseinoneasset,decreaseinanotherasset.√(b)Increaseinanasset,increaseinaliability.(c)Increaseinanasset,increaseincapital.√√(d)Decreaseinanasset,decreaseinaliability.√(e)Decreaseinanasset,decreaseincapital.√√2.TransactionsAssets+/-Liabilities+/-Owner’sequity+/-1++2++3--4++5++6--7--8+/-9--10--3.Describeeachtransactionbasedonthesummaryabove.Transactions1Purchasedlandforcash,$6,000.2Investmentforcash,$3,200.3Paidexpense$1,200.4Purchasedsuppliesonaccount,$800.5Paidowner’spersonaluse,$750.6Paidcreditor,$1,5007Suppliesusedduringtheperiod,$630.4.AssetsLiabilitiesEquityBeginning275,00080,000195,000Add.investment48,000Add.Netincome27,000Lesswithdrawals-35,000Ending320,00085,000235,0005.(a)March31,20XXApril30,20XXAssetsCash4,5005,400Accountsreceivable2,5604,100Supplies840450Totalassets7,9009,950LiabilitiesAccountspayable430690EquityTinaPierce,Capital7,4709,260(b)netincome=9,260-7,470=1,790(c)netincome=1,790+2,500=4,290Chapter21.a.ToincreaseNotesPayable-CRb.TodecreaseAccountsReceivable-CRc.ToincreaseOwner,Capital-CRd.TodecreaseUnearnedFees-DRe.TodecreasePrepaidInsurance-CRf.TodecreaseCash-CRg.ToincreaseUtilitiesExpense-DRh.ToincreaseFeesEarned-CRi.ToincreaseStoreEquipment-DRj.ToincreaseOwner,Withdrawal-DR2.a.Cash1,800Accountspayable...................................................1,800b.Revenue...................................................................4,500Accountsreceivable......................................4,500c.Owner’swithdrawals................................................1,500SalariesExpense............................................1,500d.AccountsReceivable................................................750Revenue..........................................................7503.PrepareadjustingjournalentriesatDecember31,theendoftheyear.Advertisingexpense600Prepaidadvertising600Insuranceexpense(2160/12*2)360Prepaidinsurance360Unearnedrevenue2,100Servicerevenue2,100Consultantexpense900Prepaidconsultant900Unearnedrevenue3,000Servicerevenue3,0004.1.$388,4002.$22,5203.$366,6004.$21,8005.1.netlossfortheyearendedJune30,2002:$60,0002.DRJonNissen,Capital60,000CRincomesummary60,0003.post-closingbalanceinJonNissen,CapitalatJune30,2002:$54,000Chapter31.DundeeRealtybankreconciliationOctober31,2009Reconciledbalance$6,220Reconciledbalance$6,2202.April7Dr:Notesreceivable—Acompany5400Cr:Accountsreceivable—Acompany540012Dr:Cash5394.5Interestexpense5.5Cr:Notesreceivable5400June6Dr:Accountsreceivable—Acompany5533Cr:Cash553318Dr:Cash5560.7Cr:Accountsreceivable—Acompany5533Interestrevenue27.73.(a)Asawhole:theendinginventory=685(b)appliedseparatelytoeachproduct:theendinginventory=6254.Thecostofgoodsavailableforsale=endinginventory+thecostofgoods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1)24,000+60,000-90,000*0.8=12000(2)(60,000+24,000)/(85,000+31,000)*(85,000+31,000-90,000)=18828Chapter41.(a)second-yeardepreciation=(114,000–5,700)/5=21,660;(b)second-yeardepreciation=8,600*(114,000–5,700)/36,100=25,800;(c)first-yeardepreciation=114,000*40%=45,600second-yeardepreciation=(114,000–45,600)*40%=27,360;(d)second-yeardepreciation=(114,000–5,700)*4/15=28,880.2.(a)weighted-averageaccumulatedexpenditures(2008)=75,000*12/12+84,000*9/12+180,000*8/12+300,000*7/12+100,000*6/12=483,000(b)interest...
