Problem Sets Part 1 Exercise 1-9A on page 40 Exercise 1-10A on page 40 Exercise 1-4A on page 38 Exercise 1-7A on page 39 Exercise 1-6A on page 39 Exercise 1-8A on page 39 Part 2 Question 1: What is th
BA220 – Financial Accounting
Week 1
Answer Key
Textbook: 9th Edition
EXERCISE 1-9A
a.
| Cash | + | Land | = | Creditors | + | Stockholders’ Equity | | |
| | | |||||||
| | | |||||||
| Bal. | + | = | + | |||||
| | |
b. Creditor’s Claim ÷ Total Assets = Percent of Total
÷ =
c. Investor’s Claim ÷ Total Assets = Percent of Total
÷ =
d.
| Cash | + | Land | | Creditors | + | Stockholders’ Equity | | |
| Bal. | + | = | + |
EXERCISE 1-10A
a.
b.
| Stockholders’ Equity | |||||||||||
| Company | Assets | = | Liabilities | + | Common Stock | + | Retained Earnings | ||||
| Allen | |||||||||||
| White | |||||||||||
c.
d.
EXERCISE 1-4A
| Accounting Equation | |||||||
| Stockholders’ Equity | |||||||
| Common | Retained | ||||||
| Company | Assets | = | Liabilities | + | Stock | + | Earnings |
| A | = | + | + | ||||
| B | = | + | + | ||||
| C | = | + | + | ||||
| D | = | + | + | ||||
EXERCISE 1-7A
a.
| Assets | = | Liabilities | + | Stockholders’ Equity | ||
| Cash | = | Note Payable | + | Common Stock | + | Retained Earnings |
| = | + | + | ||||
Retained Earnings = – – =
b. & c.
| Moss Company Effect of 2017 Transactions on the Accounting Equation | |||||||
| Assets | = | Liabilities | + | Stockholders’ Equity | |||
| Notes | Common | Retained | |||||
| Event | Cash | = | Payable | + | Stock | + | Earnings |
| Beginning Balances | | ||||||
| 1. Earned Revenue | |||||||
| 2. Paid expenses | |||||||
| 3. Paid dividend | |||||||
| Ending Balance | = | + | + | ||||
d.
| Cash | = | Note Payable | + | Common Stock | + | Retained Earnings |
| = | + | + |
Liabilities + Stockholders’ Equity = + + =
Assets = Liabilities + Stockholders’ Equity
=
e.
EXERCISE 1-7A
EXERCISE 1-7A
a.
| Assets | = | Liabilities | + | Stockholders’ Equity | ||
| Cash | = | Note Payable | + | Common Stock | + | Retained Earnings |
| = | + | + | ||||
Retained Earnings = – – =
b. & c.
| Moss Company Effect of 2017 Transactions on the Accounting Equation | |||||||
| Assets | = | Liabilities | + | Stockholders’ Equity | |||
| Notes | Common | Retained | |||||
| Event | Cash | = | Payable | + | Stock | + | Earnings |
| Beginning Balances | | ||||||
| 1. Earned Revenue | |||||||
| 2. Paid expenses | |||||||
| 3. Paid dividend | |||||||
| Ending Balance | = | + | + | ||||
d.
| Cash | = | Note Payable | + | Common Stock | + | Retained Earnings |
| = | + | + |
Liabilities + Stockholders’ Equity = _______ + __________ + =
Assets = Liabilities + Stockholders’ Equity
=
e.
EXERCISE 1-6A
a.
| Better Corporation Accounting Equation for 2016 | |||||||||||||||
| Assets | = | Liabilities | + | Stockholders’ Equity | |||||||||||
| Event | Cash | + | Land | = | Notes Payable | + | Com. Stock | + | Retained Earnings | Acct. Title/RE | |||||
| Bal. 1/1/16 | | ||||||||||||||
| 1. Pur. Land | | ||||||||||||||
| 2. Issued stk. | | ||||||||||||||
| 3. Provide Svc. | | ||||||||||||||
| 4. Paid Exp. | | ||||||||||||||
| 5. Loan | | ||||||||||||||
| 6. Paid Div. | | ||||||||||||||
| 7. Land Value | | | | | |||||||||||
| Totals | + | = | + | + | |||||||||||
| | |||||||||||||||
b.
| Assets | = | Liabilities | + | Stockholders’ Equity |
| = | + |
c. The balances of total assets, liabilities and stockholders’ equity will be the same on January 1, 2017 as the balances on December 31, 2016. (See b. above)
| Assets | = | Liabilities | + | Stockholders’ Equity |
|
| ||||
