Accounting Help
Accounting Help
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Exercise 1-9 Using the accounting equation LO A1
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[The following information applies to the questions displayed below.]
Answer the following questions. Hint: Use the accounting equation.
Exercise 1-9 Part a
- At the beginning of the year, Addison Company’s assets are $152,000 and its equity is $114,000. During the year, assets increase $80,000 and liabilities increase $57,000. What is the equity at year-end?
- Office Store has assets equal to $124,000 and liabilities equal to $91,000 at year-end. What is the equity for Office Store at year-end?
- At the beginning of the year, Quaker Company’s liabilities equal $65,000. During the year, assets increase by $60,000, and at year-end assets equal $190,000. Liabilities decrease $20,000 during the year. What are the beginning and ending amounts of equity?
The following transactions were completed by the company.
- The company completed consulting work for a client and immediately collected $6,500 cash earned.
- The company completed commission work for a client and sent a bill for $5,000 to be received within 30 days.
- The company paid an assistant $1,900 cash as wages for the period.
- The company collected $2,500 cash as a partial payment for the amount owed by the client in transaction b.
- The company paid $900 cash for this period’s cleaning services.
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a minus sign.)
The following transactions were completed by the company.
- The owner (Alex Carr) invested $16,400 cash in the company.
- The company purchased supplies for $850 cash.
- The owner (Alex Carr) invested $10,700 of equipment in the company.
- The company purchased $270 of additional supplies on credit.
- The company purchased land for $9,700 cash.
Required:
Enter the impact of each transaction on individual items of the accounting equation. (Enter decreases to account balances with a
Use the following information for exercise 15 to 18 LO P2
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[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,920 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 8,450 | Cash withdrawals by owner | $ | 2,930 | |
| Accounts receivable | 14,910 | Consulting revenue | 14,910 | |||
| Office supplies | 4,080 | Rent expense | 4,420 | |||
| Land | 46,020 | Salaries expense | 7,900 | |||
| Office equipment | 18,860 | Telephone expense | 860 | |||
| Accounts payable | 9,280 | Miscellaneous expenses | 680 | |||
| Owner investments | 84,920 | |||||
Use the following information for exercise 15 to 18 LO P2
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[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,920 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 8,450 | Cash withdrawals by owner | $ | 2,930 | |
| Accounts receivable | 14,910 | Consulting revenue | 14,910 | |||
| Office supplies | 4,080 | Rent expense | 4,420 | |||
| Land | 46,020 | Salaries expense | 7,900 | |||
| Office equipment | 18,860 | Telephone expense | 860 | |||
| Accounts payable | 9,280 | Miscellaneous expenses | 680 | |||
| Owner investments | 84,920 | |||||
Required information
Use the following information for exercise 15 to 18 LO P2
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[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,920 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 8,450 | Cash withdrawals by owner | $ | 2,930 | |
| Accounts receivable | 14,910 | Consulting revenue | 14,910 | |||
| Office supplies | 4,080 | Rent expense | 4,420 | |||
| Land | 46,020 | Salaries expense | 7,900 | |||
| Office equipment | 18,860 | Telephone expense | 860 | |||
| Accounts payable | 9,280 | Miscellaneous expenses | 680 | |||
| Owner investments | 84,920 | |||||
Required information
Use the following information for exercise 15 to 18 LO P2
Skip to question
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $84,920 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 8,450 | Cash withdrawals by owner | $ | 2,930 | |
| Accounts receivable | 14,910 | Consulting revenue | 14,910 | |||
| Office supplies | 4,080 | Rent expense | 4,420 | |||
| Land | 46,020 | Salaries expense | 7,900 | |||
| Office equipment | 18,860 | Telephone expense | 860 | |||
| Accounts payable | 9,280 | Miscellaneous expenses | 680 | |||
| Owner investments | 84,920 | |||||
Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
- The owner’s initial investment consists of $38,900 cash and $46,020 in land.
- The company’s $18,860 equipment purchase is paid in cash.
- The accounts payable balance of $9,280 consists of the $4,080 office supplies purchase and $5,200 in employee salaries yet to be paid.
- The company’s rent, telephone, and miscellaneous expenses are paid in cash.
- No cash has been collected on the $14,910 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
Use the following information for exercise 15 to 18 LO P2
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[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,890 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 15,140 | Cash withdrawals by owner | $ | 830 | |
| Accounts receivable | 12,720 | Consulting revenue | 12,720 | |||
| Office supplies | 2,110 | Rent expense | 2,380 | |||
| Land | 46,010 | Salaries expense | 5,620 | |||
| Office equipment | 16,780 | Telephone expense | 780 | |||
| Accounts payable | 7,360 | Miscellaneous expenses | 600 | |||
| Owner investments | 82,890 | |||||
Use the following information for exercise 15 to 18 LO P2
Skip to question
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,890 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 15,140 | Cash withdrawals by owner | $ | 830 | |
| Accounts receivable | 12,720 | Consulting revenue | 12,720 | |||
| Office supplies | 2,110 | Rent expense | 2,380 | |||
| Land | 46,010 | Salaries expense | 5,620 | |||
| Office equipment | 16,780 | Telephone expense | 780 | |||
| Accounts payable | 7,360 | Miscellaneous expenses | 600 | |||
| Owner investments | 82,890 | |||||
Use the following information for exercise 15 to 18 LO P2
Skip to question
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,890 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 15,140 | Cash withdrawals by owner | $ | 830 | |
| Accounts receivable | 12,720 | Consulting revenue | 12,720 | |||
| Office supplies | 2,110 | Rent expense | 2,380 | |||
| Land | 46,010 | Salaries expense | 5,620 | |||
| Office equipment | 16,780 | Telephone expense | 780 | |||
| Accounts payable | 7,360 | Miscellaneous expenses | 600 | |||
| Owner investments | 82,890 | |||||
Use the following information for exercise 15 to 18 LO P2
Skip to question
[The following information applies to the questions displayed below.]
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,890 in assets to launch the business. On October 31, the company’s records show the following items and amounts.
| Cash | $ | 15,140 | Cash withdrawals by owner | $ | 830 | |
| Accounts receivable | 12,720 | Consulting revenue | 12,720 | |||
| Office supplies | 2,110 | Rent expense | 2,380 | |||
| Land | 46,010 | Salaries expense | 5,620 | |||
| Office equipment | 16,780 | Telephone expense | 780 | |||
| Accounts payable | 7,360 | Miscellaneous expenses | 600 | |||
| Owner investments | 82,890 | |||||
Exercise 1-18 Preparing a statement of cash flows LO P2
Also assume the following:
- The owner’s initial investment consists of $36,880 cash and $46,010 in land.
- The company’s $16,780 equipment purchase is paid in cash.
- The accounts payable balance of $7,360 consists of the $2,110 office supplies purchase and $5,250 in employee salaries yet to be paid.
- The company’s rent, telephone, and miscellaneous expenses are paid in cash.
- No cash has been collected on the $12,720 consulting fees earned.
Using the above information prepare an October 31 statement of cash flows for Ernst Consulting. (Cash outflows should be indicated by a minus sign.)
