Quick Study 1-1 10 minutes

Principles of Financial Accounting (Chapters 1-17), 25e John Wild, Ken Shaw

(Solutions Manual All Chapter)

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1 Copyright © 2021 by McGraw Hill.All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.Chapter 1

Accounting in Business

QUICK STUDIES

Quick Study 1-1 (10 minutes)

• f Artificial Intelligence
• c Recording
• h Recordkeeping (bookkeeping)

Quick Study 1-2 (10 minutes)

• External user g. External user
• External user h. External user
• External user i. Internal user
• External user j. External user
• Internal user k. External user
• External user l. External user

Quick Study 1-3 (10 minutes)

• Opportunity
• Pressure
• Rationalization
• Opportunity
• Pressure
• Rationalization

Quick Study 1-4 (5 minutes)

• Principle
• Assumption
• Assumption
• Principle
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1 Copyright © 2021 by McGraw Hill.All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.Quick Study 1-5 (10 minutes)

Attribute Present Proprietorship Partnership Corporation LLC

• Business taxed no no yes no
• Limited liability no no yes yes
• Legal entity no no yes yes

Quick Study 1-6 (10 minutes)

• Revenue recognition principle
• Measurement (cost) principle
• Business entity assumption

Quick Study 1-7 (5 minutes)

Assets = Liabilities + Equity $700,000 (a) $280,000 $420,000 $500,000 (b) $250,000 (b) $250,000

Quick Study 1-8 (10 minutes)

1.Assets = Liabilities + Equity $75,000 (a) $35,000 $40,000 (b) $95,000 $25,000 $70,000 $85,000 $20,000 (c) $65,000

2.Assets = Liabilities

• Owner,

Capital

• Owner,

Withdrawals

• Revenues - Expenses

$40,000 $16,000 $20,000 $ 0 (a) $12,000 $ 8,000 $80,000 $32,000 $44,000 (b) $2,000 $24,000 $18,000 3 / 4

2 Copyright © 2021 by McGraw Hill.All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.Quick Study 1-9 (5 minutes)

• Increase
• Decrease
• Increase
• Decrease

Quick Study 1-10 (15 minutes)

Assets = Liabilities + Equity Cash + Accounts Recble.= Accounts Payable + Owner, Capital - Owner, Withdrawals

• Revenues - Expenses

(a) $5,500 = $5,500 Consulting

(b) + $4,000 = + 4,000 Commission

Bal. 5,500 + 4,000 = + 9,500 (c) -1,400 = - $1,400 Wages Bal. 4,100 + 4,000 = + 9,500 - 1,400 (d) +1,000 + - 1,000 = - Bal. 5,100 + 3,000 = + 9,500 - 1,400 (e) -700 + = - 700 Cleaning Bal. $4,400 + $3,000 = + $9,500 - $2,100

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