Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN: 9781305654174
Author: Gary A. Porter, Curtis L. Norton
Publisher: Cengage Learning
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Chapter 1, Problem 1.1E
To determine
Introduction:
To categorize: Business activities as operating (O), investing (I) and financing (F) activity.
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Journalize the following business transactions in general journal form. Identify each transaction by number. You may omit explanations of the transactions.
Feb. 1 Shareholders invest Php40,000 in cash in starting a real estate office operating as a corporation.
Feb. 5 Purchased Php500 of supplies on credit.
Feb. 10 Purchased equipment for Php25,000, paying Php3,500 in cash and signed a 30-day, Php21,500, note payable.
Feb. 15 Real estate commissions billed to clients amount to Php4,000.
Feb. 20 Paid Php700 in cash for the current month's rent.
Feb. 25 Paid Php250 cash on account for office supplies purchased in transaction 2.
Feb. 28 Received a bill for Php800 for advertising for the current month
You are working for The Wellington Company on temporary assignment while one of the accountants is on family leave. You have been asked to review the company’s investment journal entries and provide necessary information to the accountant preparing the financial statements.
PAGE 8
JOURNAL
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
1
Jan. 17
Investment-Red Rock Co. Stock
40,700.00
2
Cash
40,700.00
3
Feb. 5
Investment-Sunset Village Bonds
37,000.00
4
Interest Receivable
320.00
5
Cash
37,320.00
6
23
Investment-Mays and Co. Stock
27,750.00
7
Cash
27,750.00
8
Mar. 31
Cash
370.00
9
Interest Receivable
320.00
10
Interest Revenue
50.00
11
Apr. 6
Investment in Minions Corp. Stock
185,000.00
12
Cash
185,000.00
13
30
Cash
750.00
14…
Bennett Griffin and Chula Garza organized Cole Valley Book Store as a corporation; each contributed $71,600 cash to
start the business and received 5,800 shares of common stock. The store completed its first year of operations on
December 31, current year. On that date, the following financial items for the year were determined: December 31,
current year, cash on hand and in the bank, $70,150; December 31, current year, amounts due from customers from
sales of books, $41,000; unused portion of store and office equipment, $78,000; December 31, current year, amounts
owed to publishers for books purchased, $13,800; one-year note payable to a local bank for $3,200. No dividends
were declared or paid to the stockholders during the year.
Required:
1. Complete the following balance sheet as of the end of the current year. Some information has been given
below.
2. What was the amount of net income for the year? (Hint: Use the retained earnings equation [Beginning Retained
Earnings + Net Income…
Chapter 1 Solutions
Financial Accounting: The Impact on Decision Makers
Ch. 1 - Prob. 1.1KTQCh. 1 - Prob. 1.1ECh. 1 - Prob. 1.2ECh. 1 - The Accounting Equation For each of the following...Ch. 1 - The Accounting Equation Ginger Enterprises began...Ch. 1 - The Accounting Equation Using the accounting...Ch. 1 - Changes in Owners Equity The following amounts are...Ch. 1 - The Accounting Equation For each of the following...Ch. 1 - Classification of Financial Statement Items...Ch. 1 - Classification of Financial Statement Items Regal...
Ch. 1 - Net Income (or Loss) and Retained Earnings The...Ch. 1 - Statement of Retained Earnings Ace Corporation has...Ch. 1 - Accounting Principles and Assumptions The...Ch. 1 - Prob. 1.13ECh. 1 - Prob. 1.14ECh. 1 - Prob. 1.15MCECh. 1 - Prob. 1.16MCECh. 1 - Prob. 1.1PCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3PCh. 1 - Prob. 1.4PCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Green Bay...Ch. 1 - Prob. 1.7PCh. 1 - Statement of Retained Earnings for The Coca-Cola...Ch. 1 - Prob. 1.9PCh. 1 - Prob. 1.10MCPCh. 1 - Prob. 1.1APCh. 1 - Users of Accounting Information and Their Needs...Ch. 1 - Prob. 1.3APCh. 1 - Prob. 1.4APCh. 1 - Income Statement, Statement of Retained Earnings,...Ch. 1 - Income Statement and Balance Sheet Fort Worth...Ch. 1 - Corrected Financial Statements Heidis Bakery Inc....Ch. 1 - Statement of Retained Earnings for Brunswick...Ch. 1 - Prob. 1.9APCh. 1 - Prob. 1.10AMCPCh. 1 - Prob. 1.1DCCh. 1 - Reading and Interpreting Chipotles Financial...Ch. 1 - Comparing Two Companies in the Same Industry:...Ch. 1 - Prob. 1.5DCCh. 1 - Prob. 1.6DCCh. 1 - Prob. 1.7DC
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