Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 8, Problem 2E
Exercise 8-2 Effect of accounting events on the financial statements of a sole
proprietorship
A sole proprietorship was started on January 1, 2018, when it received $60,000 cash from Marlin Jones, the owner. During 2018, the company earned $35,300 in cash revenues and paid $16,200 in cash expenses. Jones withdrew $1,000 cash from the business during 2018.
Required
Prepare the income statement, capital statement (statement of changes in equity), balance sheet, and statement of
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The following list of balances is from the ledger of Mrs. Graver a sole proprietor as at April 30, 2020.
Purchases $61,420
Sales $127,245
Stock May 1, 2017 $7,940
Capital May 1, 2017 $25,200
Bank overdraft $2,490
Cash $140
Discount Allowed $2,480
Discount Received $62
Returns inwards $3,486
Returns outwards $1,356
Carriage outwards $3,210
Rent and insurance $8,870
Provision for doubtful debts $630
Fixtures and fittings $1,900
Van $5,600
Debtors $12,418
Creditors $11,400
Drawings $21,400
Wages and salaries $39,200
General office expenses $319
You are required to:
Prepare a trial balance from the information provided
Using the following additional information:
Stock April 30, 2018 $6,805.
Wages and salaries accrued at April 30, 2018 $3,500; Office expenses owing $16.
Rent prepaid April 30, 2018 $600.
Increase the provision for doubtful debts by $110.
Provide for depreciation as follows: Fixtures and fittings $190;…
In alphabetical order below are balance sheet items for Robinson Company at December 31, 2022. Sandra Robinson is the owner of
Robinson Company.
Accounts payable
Accounts receivable
Cash
Owner's capital
Total Assets
Liabilities
$94,600
Prepare a balance sheet. (List Assets in order of liquidity.)
Owner's Equity
72,400
45,700
23,500
ROBINSON COMPANY
Balance Sheet
For the Year Ended December 31, 2022
Assets
Liabilities and Owner's Equity
Total Liabilities and Owner's Equity
$
$
$
118,100
94,600
23,500
118,100
Current Attempt in Progress
Your examination of the records of a company that follows the cash basis of accounting tells you that the company's reported cash-
basis earnings in 2022 are $30,500. If this firm had followed accrual-basis accounting practices, it would have reported the following
year-end balances.
2022
$3,800
Accounts receivable
Supplies on hand
Unpaid wages owed
2,160
2,340
Other unpaid expenses 1.430 1.340
2021
$2,900
1,380
1.550
Determine the company's net earnings on an accrual basis for 2022.
Net earnings on an accrual basis for 2022
s
Chapter 8 Solutions
Survey Of Accounting
Ch. 8 - Prob. 1QCh. 8 - Prob. 2QCh. 8 - Prob. 3QCh. 8 - Prob. 4QCh. 8 - 5. What is the purpose of the articles of...Ch. 8 - 6. What is the function of the stock certificate?Ch. 8 - Prob. 7QCh. 8 - Prob. 8QCh. 8 - 9. What is a limited liability company? Discuss...Ch. 8 - Prob. 10Q
Ch. 8 - 11. What is the difference between contributed...Ch. 8 - Prob. 12QCh. 8 - Prob. 13QCh. 8 - 14. What is the meaning of each of the following...Ch. 8 - 15. What is the difference between cumulative...Ch. 8 - 16. What is no-par stock? How is it recorded in...Ch. 8 - 17. Assume that Best Co. has issued and...Ch. 8 - 18. If Best Co. issued 10,000 shares of 20 par...Ch. 8 - 19. What is the difference between par value stock...Ch. 8 - 20. Why might a company repurchase its own stock?Ch. 8 - 21. What effect does the purchase of treasury...Ch. 8 - 22. Assume that Day Company repurchased 1,000 of...Ch. 8 - 23. What is the importance of the declaration...Ch. 8 - 24. What is the difference between a stock...Ch. 8 - 25. Why would a company choose to distribute a...Ch. 8 - 26. What is the primary reason that a company...Ch. 8 - 27. If Best Co. had 10,000 shares of 20 par value...Ch. 8 - 28. When a company appropriates retained earnings,...Ch. 8 - Prob. 29QCh. 8 - Prob. 30QCh. 8 - Prob. 31QCh. 8 - 32. What are some reasons that a corporation might...Ch. 8 - Prob. 1ECh. 8 - Exercise 8-2 Effect of accounting events on the...Ch. 8 - Prob. 3ECh. 8 - Prob. 4ECh. 8 - Exercise 8-5 Characteristics of capital stock The...Ch. 8 - Exercise 8-6 Effect of issuing common stock on the...Ch. 8 - Exercise 8-7 Recording and reporting common and...Ch. 8 - Prob. 8ECh. 8 - Prob. 9ECh. 8 - Prob. 10ECh. 8 - Prob. 11ECh. 8 - Prob. 12ECh. 8 - Exercise 8-13 Recording and reporting treasury...Ch. 8 - Prob. 14ECh. 8 - Prob. 15ECh. 8 - Prob. 16ECh. 8 - Prob. 17ECh. 8 - Prob. 18ECh. 8 - Prob. 19PCh. 8 - Problem 8-20 Effect of business structure on...Ch. 8 - Prob. 21PCh. 8 - Prob. 22PCh. 8 - Problem 8-23 Recording and reporting stock...Ch. 8 - Prob. 24PCh. 8 - Prob. 25PCh. 8 - Problem 8-26 Treasury stock transactions and...Ch. 8 - Prob. 27PCh. 8 - Prob. 28PCh. 8 - Prob. 1ATCCh. 8 - ATC 8-3 Research Assignment Analyzing Skecherss...Ch. 8 - Prob. 4ATCCh. 8 - ATC 11-7 Ethical Dilemma Bad news versus very bad...
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