Fundamentals of Financial Accounting
5th Edition
ISBN: 9780078025914
Author: Fred Phillips Associate Professor, Robert Libby, Patricia Libby
Publisher: McGraw-Hill Education
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Chapter 1, Problem 1.3CP
To determine
To Prepare: The four basic financial statements for LTF Incorporation for the nine months ended September 30, 2013.
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Consider the following financial data for Larry’s Computer Stores:
Statement of Financial Position as of December 31, 2012
Cash & equivalents
$
94,500
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Accounts payable
$
122,500
Receivables
Â
202,500
Â
Short-term bank note
Â
162,500
Inventories
Â
364,000
Â
Accrued wages and taxes
Â
110,500
 Total current assets
$
661,000
Â
 Total short-term liab.
$
395,500
Â
Â
Â
Â
Long-term debt
Â
418,000
Net fixed assets
Â
468,500
Â
Common equity
Â
316,000
Total assets
$
1,129,500
Â
Total liabilities & equity
$
1,129,500
Â
Â
Â
Â
Â
Â
Â
Statement of Earnings for the Year Ended December 31, 2012
Sales revenue
$
450,000
Cost of merchandise sold
Â
250,000
Gross profit
$
200,000
Operating expenses
Â
97,500
 Earnings before interest and taxes (EBIT)
$
102,500
Interest expense
Â
46,500
 Earnings before taxes (EBT)
$
56,000
Federal and state income taxes (45 percent)
Â
25,200
Net earnings
$
30,800…
The companys balance sheet showed an accounts receivble balance of $80,000 at the begininng of the year and $47,000 at the end of the year. The company reported $720,000 in credit sales for the year. What was the amount of cash collected on account receivables durig the year
The following balances have been excerpted from Chlorine's Statement of Financial Position for the year:
Accounts receivable, increase 1,480,000
Accounts payable, decrease 600,000
Accounts written-off 240,000
Cash payment to trade creditors 4,800,000
Cash purchases 1,000,000
Cash received from customers including recoveries 6,000,000
Cash sales 1,200,000
Notes payable - bank, increase 1,200,000
Notes payable-trade, increase 800,000
Notes receivable, decrease 800,000
Purchase discounts 140,000
Purchase returns (P120,000 was refunded from the supplier) 320,000
Recovery of accounts written-off 72,000
Sales discounts 80,000
Sales return (P200,000 was refunded to the customer) 320,000
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1. What are correct gross purchases on account?
a. 5,460,000
b. 5,340,000
c. 4,260,000
d. 4,140,000
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2. What are the gross purchases?
a. 5,140,000
b. 5,260,000
c. 5,752,000
d. 6,340,000
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3. What are the net purchases?
a. 5,880,000
b. 5,292,000
c. 5,000,000
d. 4,900,000
Chapter 1 Solutions
Fundamentals of Financial Accounting
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Prob. 9QCh. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1.1MECh. 1 - Prob. 1.2MECh. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 1.11MECh. 1 - Prob. 1.12MECh. 1 - Prob. 1.13MECh. 1 - Prob. 1.14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 1.16MECh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc. is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Prob. 1.5ECh. 1 - Prob. 1.6ECh. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 1.8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 1.11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Prob. 1.2CPCh. 1 - Prob. 1.3CPCh. 1 - Prob. 1.4CPCh. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 1.2PACh. 1 - Prob. 1.3PACh. 1 - Prob. 1.4PACh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Prob. 1.3PBCh. 1 - Prob. 1.4PBCh. 1 - Prob. 1.1SDCCh. 1 - Prob. 1.2SDCCh. 1 - Prob. 1.5SDCCh. 1 - Prob. 1.6SDCCh. 1 - Financial Statements for a Business Plan Nicole...
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