Fundamentals Of Financial Accounting
6th Edition
ISBN: 9781259864230
Author: PHILLIPS, Fred, Libby, Robert, Patricia A.
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 1, Problem 15ME
Relationships among Financial Statements
Items from the 2015 income statement, statement of
TIP: Use Exhibit 1.7 to identify relations among the items, then work backward to solve for amounts.
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Identify how each of the following transactions affects the company's financial statements. For the balance sheet, Identify how each
transaction affects total assets, total llabilities, and equity. For the Income statement, Identify how each transaction affects profit. If
there is an Increase, select a *+" In the column or columns. If there is a decrease, select a "-" In the column or columns. If there is both
an Increase and a decrease, select a *+/-" In the column or columns. The Iline for the first transaction Is completed as an example.
Income
Statement
Balance Sheet
Total
Total
Transaction
Equity
Profit
Assets
Liabilities
1 Owner invests cash
2 Seli services for cash
3 Acquire services on credit
4 Pay wages with cash
5 Owner withdraws cash
6 Borrow cash with note payable
7 Sell services on credit
8 Buy office equipment for cash
9 Collect receivable from (7)
10 Buy asset with note payable
Perform the Reperformance or Recalculation procedures to check the mathematical accuracy ofthe Income Statement. What issue did you find? What is the next step? Create a Correctedversion of the Income Statement.
Income Statement
For the Year Ended
For the Year Ended
Revenue
3/31/2021
3/31/2022
Sales Revenue: Corporate Accounts
$ 353,739.57
$ 343,050.56
Sales Revenues: Storefront
$ 80,649.00
$ 91,411.50
Total Sales Revenue
$ 434,388.57
$ 434,462.06
Cost of Goods Sold: Ingredients
$ 69,736.39
$ 64,645.64
Cost of Goods Sold: Boxes and Cupcake Cups
$ 3,875.55
$ 3,755.55
Cost of Goods Sold: Beverages
$ 5,466.50
$ 5,681.50
Total COGS
$ 76,078.44
$ 74,082.69
Gross Profit
$ 358,310.13
$ 360,379.37
Interest Revenue
$…
Below is the balance sheet and income statement for Chin Corporation. You are needed to analyze the financial statements. Use the horizontal, vertical, ratio methods to analyze the financial statements. For the vertical and horizontal analysis, type the accounts and dollar values for the years 2018 and 2017 (as listed on the financial statements even if there is no dollar value for an account). For the ratio analysis, make sure to compute 2 ratios from each section.
Income Statement
Period Ending:
12/31/2018
12/31/2017
Total Revenue
$76,512,000
$78,291,000
Cost of Revenue
$54,884,000
$56,586,000
Gross Profit
$21,628,000
$21,706,000
Operating Expenses
Research and Development
$0
$0
Sales, General, and Admin.
$13,886,000
$13,599,000
Non-Recurring Items
$0
$0
Other Operating Items
$0
$0
Operating Income
$7,832,000
$8,079,000
Add'l income/expense items
-$323,000…
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 - Explain why the income statement, statement of...Ch. 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. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 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. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 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 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License