Accounting for Managers, 1st Canadian Edition 1e Paul CollierSandy Kizan Eckhard Schumann (Answer Key For Self-Test Questions, All Chapters, 100% Original Verified, A+ Grade)

Accounting for Managers, 1st Canadian Edition 1e Paul CollierSandy Kizan Eckhard Schumann (Answer Key For Self-Test Questions, All Chapters, 100% Original Verified, A+ Grade)
Chapter 3
Answer Key for Self-Test Questions
S3.1 c
S3.2 d
S3.3 d
S3.4 c
S3.5 a • cash = $15,000 + $25,000 = $40,000
• profit = $50,000 – $35,000 = $15,000
S3.6 b • profit = $150,000 – $80,000 – $30,000 – $12,000 – $8,000 = $20,000
• cash = $100,000 – $90,000 + $150,000 – $30,000 – $12,000 – $8,000 =
$100,000.
• equity = $100,000
S3.7 c assets = liabilities + equity
$600,000 = $500,000 + equity
Thus, equity = $100,000
S3.8 c
S3.9 d
S3.10 b • profit = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 = $38,000
• cash = $100,000 – $35,000 – $15,000 – $4,000 – $8,000 + $25,000 –
$30,000 = $33,000
• shareholders’ equity = share capital + retained earnings (which equals
profit in first year of business) = $25,000 + $38,000 = $63,000