Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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Textbook Question
Chapter 1, Problem 20AE
Types of business organizations and
The following are the balances of the assets, liabilities, and equity of Fitness Fanatics at March 31, 2018:
| Cash..................................... | $15,000 | Office Equipment............... | $10,300 |
| 12,300 | Common Stock................... | 6,000 | |
| Accounts Payable................ | 3,300 | Note Payable....................... | 5,000 |
| Accounts Receivable ........ | 600 | Supplies............................. | 700 |
Requirements
- 1. What type of business organization is Fitness Fanatics?
- 2. Prepare the balance sheet of the business at March 31, 2018.
- 3. What does the balance sheet report?
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Question 3. Purchased computers with a cost of $45,000; $22,000 was paid; the balance is due and is expected to be paid the end of the first quarter of the next fiscal year.
Expenditures—Capital Outlay...............................................................
Cash................................................................................
Vouchers Payable.............................................................
To record purchase of computers.
Learning Outcome 7. Answer the following question in a short answer of 100-150 words; provide comprehensive information and examples in applicable, to support your answer. How Financial Statements are Interconnected? Explain.
Balance Sheet
Assets
Liabilities
Current Assets
Current Liabilities
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
Accounts payable. . . . . . . . . . . . . . . . . . .
36
Accounts receivable. . . . . . . . . . . . . . . . . .
25
Notes payable/short term debt. . . . . . . . . .
5
Inventories. . . . . . . . . . . . . . . . . . . . . . . . .
15
Total current liabilities. . . . . . . . . . . . . . . .
41
Total current assets. . . . . . . . . . . . . . . . . . .
93
Long-Term Assets
Long-Term Liabilities
Net property, plant, and equipment. . . . . . . .
117
Long-term debt. . . . . . . . . . . . . . . . . . . . .
138
Total long-term assets. . . . . . . . . . . . . . . . .
117
Total long-term liabilities. . . . . . . . . . . . . .
138
Total liabilities. . . . . . . . . . . . . . . . . . . .
179…
Chapter 1 Solutions
Financial Accounting, Student Value Edition (5th Edition)
Ch. 1 - The text states that accounting is the "language...Ch. 1 - Would you describe accounting as primarily a...Ch. 1 - Prob. 3DQCh. 1 - What are some reasons why accounting has adopted...Ch. 1 - What are some of the uses of financial statements?Ch. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - How is the accounting equation affected by each of...Ch. 1 - In what order should the financial statements be...Ch. 1 - Which financial statement would be most useful to...
Ch. 1 - Prob. 1SCCh. 1 - Prob. 2SCCh. 1 - Which accounting principle specifically states...Ch. 1 - Wave Rider is famous for custom skateboards. At...Ch. 1 - Assume that Wave Rider sold skateboards to a...Ch. 1 - Assume that Wave Rider sold skateboards to another...Ch. 1 - Assume that Wave Rider paid expenses totaling...Ch. 1 - Consider the overall effects of the transactions...Ch. 1 - The balance sheet reports a. a businesss financial...Ch. 1 - The income statement reports a. a business's...Ch. 1 - Prob. 11SCCh. 1 - Prob. 12SCCh. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Accounting principles (Learning Objective 4) 5-10...Ch. 1 - Prob. 3SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 5SECh. 1 - Prob. 6SECh. 1 - Prob. 7SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Prob. 9SECh. 1 - Prob. 10SECh. 1 - Entering transactions in the accounting equation...Ch. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Transaction analysis (Learning Objective 5) 5-10...Ch. 1 - Prob. 14SECh. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 17AECh. 1 - Using the accounting equation to determine net...Ch. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Types of business organizations and balance sheet...Ch. 1 - Types of accounts and income statement preparation...Ch. 1 - Using the accounting equation to determine net...Ch. 1 - Basic accounting equation (Learning Objective 5)...Ch. 1 - Prob. 24BECh. 1 - Prob. 25BECh. 1 - Prob. 26BECh. 1 - Transaction analysis (Learning Objective 5) 15-20...Ch. 1 - Prob. 28BECh. 1 - Prob. 29BECh. 1 - Prob. 30BECh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 32APCh. 1 - A Preparing the income statement, statement of...Ch. 1 - Preparing the income statement and balance sheet;...Ch. 1 - Prob. 35APCh. 1 - Transaction analysis and the calculation of net...Ch. 1 - Prob. 37BPCh. 1 - Prob. 38BPCh. 1 - Preparing the income statement and balance sheet;...Ch. 1 - Prob. 40BPCh. 1 - Prob. 1CECh. 1 - This problem is the first problem in a sequence...Ch. 1 - Prob. 1CFSAPCh. 1 - Prob. 1EIACh. 1 - Prob. 2EIACh. 1 - Prob. 1FACh. 1 - Industry Analysis Purpose: To help you understand...Ch. 1 - Prob. 1SBACh. 1 - Prob. 1WC
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