Scribd Logo
Upload

Welcome to Scribd!

  • 14 views

    Accounting Chap 2

    Uploaded by

    Nguyễn Ngọc Mai
    This document contains sample chapter exercises from an accounting textbook. It includes multiple choice questions and practice problems involving income statements, balance sheets, and retained earnings statements. The practice problems provide financial information for hypothetical companies, including revenue, expenses, assets, liabilities, equity, and retained earnings over time. The document tests understanding of basic accounting concepts and preparation of fundamental financial statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Accounting Chap 2

    Uploaded by

    Nguyễn Ngọc Mai
    14 views3 pages
    This document contains sample chapter exercises from an accounting textbook. It includes multiple choice questions and practice problems involving income statements, balance sheets, and retained earnings statements. The practice problems provide financial information for hypothetical companies, including revenue, expenses, assets, liabilities, equity, and retained earnings over time. The document tests understanding of basic accounting concepts and preparation of fundamental financial statements.

    Original Title

    ACCOUNTING CHAP 2 (2)

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document contains sample chapter exercises from an accounting textbook. It includes multiple choice questions and practice problems involving income statements, balance sheets, and retained earnings statements. The practice problems provide financial information for hypothetical companies, including revenue, expenses, assets, liabilities, equity, and retained earnings over time. The document tests understanding of basic accounting concepts and preparation of fundamental financial statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    14 views3 pages

    Accounting Chap 2

    Uploaded by

    Nguyễn Ngọc Mai
    This document contains sample chapter exercises from an accounting textbook. It includes multiple choice questions and practice problems involving income statements, balance sheets, and retained earnings statements. The practice problems provide financial information for hypothetical companies, including revenue, expenses, assets, liabilities, equity, and retained earnings over time. The document tests understanding of basic accounting concepts and preparation of fundamental financial statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 3

    Name: Nguyen Ngoc Mai

    CHAPTER 2 EXERCISES

    Ex 1: BE2-1
    CL​ - Account payable CL ​ - Income tax payable
    CA ​- Account receivable LTI ​ - Investment in long term bonds
    PPE​ - Accumulated depreciation PPE ​- Land
    PPE​ - Buildings CA ​ - Inventory
    CA​ - Cash IA ​ - Patent
    IA ​ - Goodwill CA ​ - Supplies

    Ex 2: BE2-9: ​1- a; 2- b; 3- c; 4-d

    Ex 3: E2-1
    CL​ - Account payable CL ​ - Income taxes payable
    CA ​- Account receivable CA - ​Inventory
    PPE​ - Accumulated depreciation CA - ​Stock investment (sold in 7 months)
    PPE​ - Buildings PPE ​- Land (in use)
    CA​ - Cash CL - ​Mortgage payable
    CL ​- Interest payable CA ​ - Supplies
    IA ​ - Goodwill PPE - ​Equipment
    CA ​ - Prepaid rent

    Ex 4: E2-5
    ​We have to calculate the retained earnings on 31, December 2017 first:

    Service Revenues: $ 14,700


    Expenses: Insurance Expense 780
    Depreciation Expense 5,300
    Interest Expense 2,600
    => Net income = $ 6,020

    Ret. earnings Jan 1, 2017 $ 40,000


    Add: Net income 6,020
    Less: Dividends 0
    => Ret. Earnings Dec 31, 2017 = $ 46,020

    BALANCE SHEET
    December 31, 2017
    1. ASSETS
    - Current Assets:
    + Cash $11,840
    + Accounts receivable 12,600
    + Prepaid insurance 3,200
    - PPE:
    + Buildings 105,800
    + Equipment 82,400
    + Land 61,200
    + Accumulated depreciation- equipment ​ - 18,720
    => TOTAL ASSETS= $ 212,720

    2. LIABILITIES AND STOCKHOLDERS’ EQUITY


    LIABILITIES:
    Current liabilities:
    - Accounts payable $9,500
    - Notes payable 80,000
    - Interest payable 3,600
    Long term liabilities:
    - Notes payable (paid in 2018) 13,600

    STOCKHOLDERS’ EQUITY:
    Common stock: 60,000
    Retained Earnings Dec 31, 2017 46,020
    => LIABILITIES AND STOCKHOLDERS’ EQUITY = $ 212,720

    Ex 5: P2-3A
    a.1) INCOME STATEMENT
    REVENUE:
    Sales Revenue $ 5,100
    EXPENSES
    Cost of goods sold 1,060
    Income tax expenses 165
    Insurance Expenses 210
    Interest Expenses 400
    Salaries and wages expenses 700
    Depreciation expenses 335
    -> Total expenses $ 2,870
    => NET INCOME = $ 2,230
    a.2)
    RETAINED EARNINGS STATEMENTS 30 APR, 2017
    Ret. Earnings Jan 1, 2017 $ 1,600
    Add: Net income 2,230
    Less: Dividends 325
    => Ret. Earnings 30 Apr, 2017 = $ 3,505
    b)
    CLASSIFIED BALANCE SHEET
    1. ASSETS
    Current assets: Cash $ 1,270
    Stock Investment (short term) 1,200
    Accounts receivable 810
    ​Inventory 967
    Prepaid insurance 60
    PPE: Equipments 2,420
    Land 3,100
    Accumulated Depreciation ​- 670
    => Total Assets = $ 9,157

    2. LIABILITIES AND STOCKHOLDERS’ EQUITY


    Liabilities:
    Current Liabilities: Accounts payable $ 834
    Tax payable 153
    Mortgage payable 3,500
    Notes payable 61
    Wages payable 222
    Stockholders’ Equity:
    Common stock $ 900
    Ret. Earnings 30 Apr 3,505
    => ​ Total liabilities and stockholders’ equity= $ 9,157

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy