Principles of Financial Accounting.
24th Edition
ISBN: 9781260158601
Author: Wild
Publisher: MCG
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Textbook Question
Chapter 1, Problem 23E
Using the
A1
Answer the following questions. Hint: Use the accounting equation.
a. On January 1, Lumia Company's liabilities are $60,000 and its equity is $40,000. On January 3, Lumia purchases and installs solar panel assets costing $10,000. For the panels, Lumia pays $4,000 cash and promises to pay the remaining $6,000 in six months. What is the total of Lumia's assets after the solar panel purchase?
b. On March l, ABX Company's assets are $100,000 and its liabilities are $30,000. On March 5, ABX is fined $15,000 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX?
c. On August I, Lola Company's assets are $30,000 and its liabilities are $10,000. On August 4, Lola issues a sustainability report following SASB guidelines. Investors react positively to this report. On August 5, a new investor contributes $3,000 cash and $7,000 in equipment in exchange for Lola stock. After the investment, what is the amount of equity for Lola?
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Please provide the following journal entries for these transactions, you can draw the T-
Accounts or journal entries; A) Mortgage Company funded a loan for $100,000 and the
company only advance 98% of the loan through financing (Warehouse Line). Remaining 2%
is gathered from Companys funds. B) The same loan was sold to investor at 102 % 15 days
later, please prepare the journal entries. C) The Company has expenses at the end of the
month in the amount of $20,000 but has not paid until 30 days later. Please prepare journal
entries at the end of the month and 30 days payment. D) The company received funds and
has a trust liability account for borrowers in the amount of $10,000. 30 days later the trust
liability is being transferred to the final investors. E) Company Prepaid Insurance for 12 months
and paid in January for $1,200. You are now in the March 31 st of the year.
a. On January 1, Lumia Company's liabilities are $67,000 and its equity is $47,000. On January 3, Lumia purchases and installs solar
panel assets costing $17,000. For the panels, Lumia pays $7,500 cash and promises to pay the remaining $9,500 in six months.
What is the total of Lumia's assets after the solar panel purchase?
b. On March 1, ABX Company's assets are $107,000 and its liabilities are $37,000. On March 5, ABX is fined $18,500 for failing
emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX?
c. On August 1, Lola Company's assets are $37,000 and its liabilities are $17,000. On August 4, Lola issues a sustainability report
following SASB guidelines. Investors react positively to this report. On August 5, a new investor contributes $6,500 cash and
$10,500 in equipment in exchange for ownership in Lola. After the investment, what is the amount of equity for Lola?
Complete this question by entering your answers in…
Procedures:
1. Analyze the following business transactions below.
For the month of December 2022, Mr. Mira Shikigami had the following transactions:
Dec.
Mr. Mira Shikigami invested P1,200,000 to start the business, Shikigami Accounting Firm
1
1
The firm obtained a note from Solar Bank amounting to P300,000. The note bears a 6%
annual interest payable every June 1 of the following year. The principal is payable in two
(2) equal annual installments.
1
The firm paid P15,000 for the necessary permits and licenses for its operation.
1
The firm paid P180,000 for the annual rent of the office space. The lease contract will
expire on June 1 of the following year and will be renewed yearly.
3
The firm rendered service to Kyubi Realties, Inc. worth P250,000 on credit.
3
The firm purchased supplies worth P50,000.
9
The firm purchased a laptop in cash, P50,000. The laptop has an estimated useful life of
three (3) years with no residual value. The company treats purchases during the first half
of…
Chapter 1 Solutions
Principles of Financial Accounting.
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - If the assets of a company increase by 100,000...Ch. 1 - Brunswick borrows 50,000 cash from Third National...Ch. 1 - Geek Squad performs services for a customer and...Ch. 1 - Prob. 1DQCh. 1 - Technology is increasingly used to process...Ch. 1 - Identify four kinds of external users and describe...Ch. 1 - What are at least three questions business owners...Ch. 1 - Identify three actual businesses that offer...
Ch. 1 - Describe the internal role of accounting for...Ch. 1 - Prob. 7DQCh. 1 - What type of accounting information might be...Ch. 1 - Why is accounting described as a service activity?Ch. 1 - What are some accounting-related professions?Ch. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - What does the concept of objectivity imply for...Ch. 1 - Prob. 14DQCh. 1 - Why is the revenue recognition principle needed?...Ch. 1 - Describe the three basic forms of business...Ch. 1 - Define (a) assets, (b) liabilities, (c) equity,...Ch. 1 - Prob. 18DQCh. 1 - Identify the two main categories of accounting...Ch. 1 - What do accountants mean by the term revenue?Ch. 1 - Prob. 21DQCh. 1 - Prob. 22DQCh. 1 - Prob. 23DQCh. 1 - Give two examples of expenses a business might...Ch. 1 - What is the purpose of the statement of retained...Ch. 1 - Prob. 26DQCh. 1 - Prob. 27DQCh. 1 - Define and explain return on assets.Ch. 1 - Define return and risk. Discuss the trade-off...Ch. 1 - Prob. 30DQCh. 1 - Prob. 31DQCh. 1 - Prob. 32DQCh. 1 - GOOGLE Access the SEC EDGAR database (SEC.gov) and...Ch. 1 - Understanding accounting Choose from the following...Ch. 1 - Identifying accounting users C2 Identify the...Ch. 1 - Prob. 3QSCh. 1 - Prob. 4QSCh. 1 - Prob. 5QSCh. 1 - Identifying accounting principles and assumptions...Ch. 1 - Applying the accounting equation A1 a. Total...Ch. 1 - Applying the accounting equation Use the...Ch. 1 - Use Google 's December 31, 2017, financial...Ch. 1 - Prob. 10QSCh. 1 - Prob. 11QSCh. 1 - Prob. 12QSCh. 1 - Prob. 13QSCh. 1 - Prob. 14QSCh. 1 - Prob. 15QSCh. 1 - Prob. 16QSCh. 1 - Prob. 17QSCh. 1 - Classifying activities reflected in the accounting...Ch. 1 - Prob. 2ECh. 1 - Prob. 3ECh. 1 - Prob. 4ECh. 1 - Prob. 5ECh. 1 - Prob. 6ECh. 1 - Prob. 7ECh. 1 - Using the accounting equation Determine the...Ch. 1 - Using the accounting equation Answer the following...Ch. 1 - Analysis using the accounting equation Zen began a...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions on the...Ch. 1 - Identifying effects of transactions using the...Ch. 1 - Prob. 14ECh. 1 - Preparing an income statement On October 1, Ebony...Ch. 1 - Preparing a statement of retained earnings Use the...Ch. 1 - Prob. 17ECh. 1 - Preparing a statement of cash flows Use the...Ch. 1 - Prob. 19ECh. 1 - Prob. 20ECh. 1 - Match each transaction a through e to one of tire...Ch. 1 - Prob. 22ECh. 1 - Using the accounting equation A1 Answer the...Ch. 1 - Identifying effects of transactions on financial...Ch. 1 - Computing missing information using accounting...Ch. 1 - Preparing an income statement P2 As of December...Ch. 1 - Prob. 4APCh. 1 - Prob. 5APCh. 1 - Preparing a statement of cash flows P2 Following...Ch. 1 - Prob. 7APCh. 1 - Prob. 8APCh. 1 - Determining expenses, liabilities. equity, and...Ch. 1 - Prob. 11APCh. 1 - Prob. 12APCh. 1 - Describing business activities C5 A start-up...Ch. 1 - Describing business activities An organization...Ch. 1 - Prob. 1BPCh. 1 - Prob. 3BPCh. 1 - Prob. 4BPCh. 1 - Prob. 5BPCh. 1 - Prob. 6BPCh. 1 - Prob. 8BPCh. 1 - Determining expenses, liabilities, equity, and...Ch. 1 - Prob. 11BPCh. 1 - Identifying risk and return All business decisions...Ch. 1 - Prob. 13BPCh. 1 - Prob. 14BPCh. 1 - Prob. 1SPCh. 1 - COMPANY ANALYSIS Key financial figures for Apple's...Ch. 1 - Prob. 2AACh. 1 - Prob. 3AACh. 1 - ETHICS CHALLENGE Tana Thorne works in a public...Ch. 1 - COMMUNICATING IN PRAC TICE APPLE Refer to this...Ch. 1 - TAKING IT TO THE NET A2 Visit the EDGAR database...Ch. 1 - ENTREPRENEURIAL DECISION APPLE Refer to this...
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