1、Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: “The company covered up the first report, and the local newspaper uncovered the companys secret. The company was forced to not locate here (Collier County). It became paten
2、tly clear that doing the least that is legally allowed is not enough.“1-21. B 2. B 3. E 4. F 5. B 6. F 7. X 8. E 9. X 10. B1-3a. $96,500 ($25,000 + $71,500)b. $67,750 ($82,750 $15,000)c. $19,500 ($37,000 $17,500)1-4a. $275,000 ($475,000 $200,000)b. $310,000 ($275,000 + $75,000 $40,000)c. $233,000 ($
3、275,000 $15,000 $27,000)d. $465,000 ($275,000 + $125,000 + $65,000)e. Net income: $45,000 ($425,000 $105,000 $275,000)1-5a. owners equity b.liability c.asset d.asset e.owners equity f. asset 1-6a. Increases assets and increases owners equity.b. Increases assets and increases owners equity.c. Decreas
4、es assets and decreases owners equity.d. Increases assets and increases liabilities.e. Increases assets and decreases assets.1-71. increase 2. decrease 3.increase 4. decrease1-8a. (1) Sale of catering services for cash, $25,000.(2) Purchase of land for cash, $10,000.(3) Payment of expenses, $16,000.
5、(4) Purchase of supplies on account, $800.(5) Withdrawal of cash by owner, $2,000.(6) Payment of cash to creditors, $10,600.(7) Recognition of cost of supplies used, $1,400.b. $13,600 ($18,000 $4,400)c. $5,600 ($64,100 $58,500)d. $7,600 ($25,000 $16,000 $1,400)e. $5,600 ($7,600 $2,000)1-9It would be
6、 incorrect to say that the business had incurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owners equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStat
7、ement of Owners EquityFor the Month Ended April 30, 2006Leo Perkins, capital, April 1, 2006. $297,200Net income for the month . $73,000Less withdrawals . 12,000Increase in owners equity. 61,000Leo Perkins, capital, April 30, 2006. $358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended Nove
8、mber 30, 2006Fees earned. $232,120Operating expenses:Wages expense . $100,100Rent expense. 35,000Supplies expense. 4,550Miscellaneous expense . 3,150Total operating expenses. 142,800Net income . $ 89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k 1-151. binvesting
9、activity 2.aoperating activity3. cfinancing activity 4.aoperating activity1-16a. 2003: $10,209 ($30,011 $19,802)2002: $8,312 ($26,394 $18,082)b. 2003: 0.52 ($10,209 $19,802)2002: 0.46 ($8,312 $18,082)c. The ratio of liabilities to stockholders equity increased from 2002 to 2003, indicating an increa
10、se in risk for creditors. However, the assets of The Home Depot are more than sufficient to satisfy creditor claims.Chapter. 22-1AccountAccount NumberAccounts Payable 21Accounts Receivable 12Cash 11Corey Krum, Capital 31Corey Krum, Drawing 32Fees Earned 41Land 13Miscellaneous Expense 53Supplies Expe
11、nse 52Wages Expense 512-2Balance Sheet Accounts Income Statement Accounts1. Assets11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15 Equipment2. Liabilities21 Accounts Payable22 Unearned Rent3. Owners Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41 Fees Earned5
12、. Expenses51 Wages Expense52 Rent Expense53 Supplies Expense59 Miscellaneous Expense2-3a. and b.Account Debited Account CreditedTransaction Type Effect Type Effect(1) asset + owners equity +(2) asset + asset (3) asset + asset liability +(4) expense + asset (5) asset + revenue +(6) liability asset (7
13、) asset + asset (8) drawing + asset (9) expense + asset Ex. 24(1) Cash . 40,000Ira Janke, Capital . 40,000(2) Supplies . 1,800Cash. 1,800(3) Equipment. 24,000Accounts Payable. 15,000Cash. 9,000(4) Operating Expenses . 3,050Cash. 3,050(5) Accounts Receivable. 12,000Service Revenue. 12,000(6) Accounts
14、 Payable . 7,500Cash. 7,500(7) Cash . 9,500Accounts Receivable. 9,500(8) Ira Janke, Drawing . 5,000Cash. 5,000(9) Operating Expenses . 1,050Supplies. 1,0502-51. debit and credit (c)2. debit and credit (c)3. debit and credit (c)4. credit only (b)5. debit only (a)6. debit only (a)7. debit only (a)2-6a
15、. Liabilitycredit f. Revenuecredit b. Assetdebit g. Assetdebitc. Assetdebit h. Expensedebitd. Owners equity i. Assetdebit(Cindy Yost, Capital)credit j. Expensedebite. Owners equity(Cindy Yost, Drawing)debit2-7a. credit g. debitb. credit h. debitc. debit i. debitd. credit j. credite. debit k. debitf.
16、 credit l. credit2-8a. Debit (negative) balance of $1,500 ($10,500 $4,000 $8,000). Such a negative balance means that the liabilities of Seths business exceed the assets.b.Yes. The balance sheet prepared at December 31 will balance, with Seth Fite, Capital, being reported in the owners equity sectio
17、n as a negative $1,500.2-9a. The increase of $28,750 in the cash account does not indicate earnings of that amount. Earnings will represent the net change in all assets and liabilities from operating transactions.b. $7,550 ($36,300 $28,750)2-10a. $40,550 ($7,850 + $41,850 $9,150)b. $63,000 ($61,000
18、+ $17,500 $15,500)c. $20,800 ($40,500 $57,700 + $38,000)2-112005Aug. 1 Rent Expense . 1,500Cash. 1,5002 Advertising Expense. 700Cash. 7004 Supplies . 1,050Cash. 1,0506 Office Equipment . 7,500Accounts Payable. 7,5008 Cash . 3,600Accounts Receivable. 3,60012 Accounts Payable . 1,150Cash. 1,15020 Gayl
19、e McCall, Drawing. 1,000Cash. 1,00025 Miscellaneous Expense. 500Cash. 50030 Utilities Expense . 195Cash. 19531 Accounts Receivable. 10,150Fees Earned . 10,15031 Utilities Expense . 380Cash. 3802-12a.JOURNAL Page 43Post.Date Description Ref. Debit Credit2006Oct. 27 Supplies. 15 1,320Accounts Payable.
20、 21 1,320Purchased supplies on account.b., c., d.Supplies 15Post.BalanceDate Item Ref. Dr. Cr. Dr. Cr.2006Oct. 1 Balance . . . 585 .27 . 43 1,320 . 1,905 .Accounts Payable 212006Oct. 1 Balance . . . . 6,15027 . 43 . 1,320 . 7,4702-13Inequality of trial balance totals would be caused by errors descri
21、bed in (b) and (d).2-14ESCALADE CO.Trial BalanceDecember 31, 2006Cash .13,375Accounts Receivable. 24,600Prepaid Insurance. 8,000Equipment . 75,000Accounts Payable. 11,180Unearned Rent . 4,250Erin Capelli, Capital . 82,420Erin Capelli, Drawing. 10,000Service Revenue . 83,750Wages Expense. 42,000Adver
22、tising Expense . 7,200Miscellaneous Expense. 1,425181,600 181,6002-15a. Gerald Owen, Drawing. 15,000Wages Expense . 15,000b. Prepaid Rent. 4,500Cash. 4,5002-16题目的资料不全, 答案略.2-17a. KMART CORPORATIONIncome StatementFor the Years Ending January 31, 2000 and 1999(in millions)Increase (Decrease)2000 1999
23、Amount Percent1. Sales. $37,028 $35,925 $ 1,103 3.1%2. Cost of sales. (29,658) (28,111) 1,547 5.5%3. Selling, general, and admin. expenses. (7,415) (6,514) 901 13.8%4. Operating income (loss) before taxes . $ (45) $ 1,300 $(1,345) (103.5%)b. The horizontal analysis of Kmart Corporation reveals deter
24、iorating operating results from 1999 to 2000. While sales increased by $1,103 million, a 3.1% increase, cost of sales increased by $1,547 million, a 5.5% increase. Selling, general, and administrative expenses also increased by $901 million, a 13.8% increase. The end result was that operating income
25、 decreased by $1,345 million, over a 100% decrease, and created a $45 million loss in 2000. Little over a year later, Kmart filed for bankruptcy protection. It has now emerged from bankruptcy, hoping to return to profitability.3-11. Accrued expense (accrued liability)2. Deferred expense (prepaid exp
26、ense)3. Deferred revenue (unearned revenue)4. Accrued revenue (accrued asset)5. Accrued expense (accrued liability)6. Accrued expense (accrued liability)7. Deferred expense (prepaid expense)8. Deferred revenue (unearned revenue)3-2Supplies Expense. 801Supplies . 8013-3$1,067 ($118 + $949)3-4a. Insurance expense (or expenses) will be understated. Net income will be overstated.b. Prepaid insurance (or assets) will be overstated. Owners equity will be overstated.3-5
