Financial Accounting, 17e Carl Warren, Jefferson Jones,

Financial Accounting, 17e Carl Warren, Jefferson Jones, William Tayler (Solutions Manual, All Chapters. 100% Original Verified, A+ Grade) Download Link At the End

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1.Some users of accounting information include managers, employees, investors, creditors, customers, and the government.

2.The role of accounting is to provide information for managers to use in operating the business.In addition, accounting provides information to others to use in assessing the economic performance and condition of the business.

3.The corporate form allows the company to obtain large amounts of resources by issuing stock.For this reason, most companies that require large investments in property, plant, and equipment are organized as corporations.

4.No. The business entity assumption limits the recording of economic data to transactions directlyaffecting the activities of the business. The payment of the interest of $4,500 is a personal transaction of Josh Reilly and should not be recorded by Dispatch Delivery Service.

5.The land should be recorded at its cost of $167,500 to Reliable Repair Service. This is consistent with the cost principle.

6.a.No. The offer of $2,000,000 and the increase in the assessed value should not be recognizedin the accounting records.b.Cash would increase by $2,125,000, land would decrease by $900,000, and owner’s capital would increase by $1,225,000.

7.An account receivable is a claim against a customer for goods or services sold. An account payable is an amount owed to a creditor for goods or services purchased. Therefore, an account receivable in the records of the seller is an account payable in the records of the purchaser.

8.(b)The business realized net income of $91,000 ($679,000 – $588,000).

• (a)The business incurred a net loss of $75,000 ($640,000 – $715,000).
• (a)Net income or net loss

(b)Owner’s capital at the end of the period (c)Cash at the end of the period

CHAPTER 1

INTRODUCTION TO ACCOUNTING AND BUSINESS

DISCUSSION QUESTIONS

1-1 © 2024 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2 / 4

CHAPTER 1 Introduction to Accounting and Business

BE 1–1

$320,000. Under the cost principle, the land should be recorded at the cost to Tin Roofing.

BE 1–2

• A = L + OE

$690,000 = $375,000 + OE

OE = $315,000

• A = L + OE

$690,000 + $80,000 = $375,000 + $51,500 + OE

$770,000 = $426,500 + OE

OE = $343,500

BE 1–3

(2) Expense (Advertising Expense) increases by $3,500; Asset (Cash) decreases by $3,500.(3) Asset (Supplies) increases by $2,500; Liability (Accounts Payable) increases by $2,500.(4) Asset (Accounts Receivable) increases by $18,750; Revenue (Delivery Service Fees) increases by $18,750.(5) Asset (Cash) increases by $14,150; Asset (Accounts Receivable) decreases by $14,150.

BE 1–4

Fees earned

$1,150,000

Expenses:

Wages expense$640,000 Office expense150,000 Miscellaneous expense45,000 Total expenses(835,000) Net income$ 315,000

BASIC EXERCISES

Income Statement For the Year Ended August 31, 20Y6 A-One Travel Service 1-2 © 2024 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 / 4

CHAPTER 1 Introduction to Accounting and Business

BE 1–5

Kate Duffner, capital, September 1, 20Y5 $ 835,000 Additional investment by owner 15,000 Net income for the year 315,000 Withdrawals (50,000) Kate Duffner, capital, August 31, 20Y6 $1,115,000

BE 1–6

Cash$ 184,500 Accounts receivable 68,000 Supplies17,500 Land880,000 Total assets $1,150,000 Accounts payable $ 35,000 Kate Duffner, capital 1,115,000 Total liabilities and owner’s equity $1,150,000 Assets Liabilities Owner’s Equity August 31, 20Y6 A-One Travel Service Statement of Owner’s Equity For the Year Ended August 31, 20Y6 A-One Travel Service Balance Sheet 1-3 © 2024 Cengage Learning, Inc. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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