Financial Accounting
15th Edition
ISBN: 9781337272124
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
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Chapter 1, Problem 5PEA
Using the income statement for Adventure Travel Service shown in Practice Exercise 1-4A, prepare a statement of owner’s equity for the year ended April 30, 2019. Jerome Foley, the owner, invested an additional $60,000 in the business during the year and withdrew cash of $40,000 for personal use. Jerome Foley, capital as of May 1, 2018, was $1,020,000.
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The accounting records of Nettle Distribution show the following assets and liabilities as of December 31, 2018 and 2019. Compute net income for 2019 by comparing total equity amounts for these two years and using thefollowing information: During 2019, the owner invested $35,000 additional cash in the business and withdrew $19,000 cash for personal use.
Cepe A. Ko entered into the following transactions during December 2019:
1. Cepe A. Ko invested the following assets:
Cash, P100,000
Office supplies, P1,500;
Store equipment, P10,800.
Store Furniture, P22,200
2. Paid business permits P3,800
2. Paid three months' rent on a lease rental contract, P27,000. One third of the space is use for the office and the rest is for the store.
3. Paid the premiums on property and casualty insurance policies, P2,700.
5. Purchased additional office equipment on account from Office Station Co., P31,200. Freight of P1,800 was paid by Cepe A. Ko.
6. Purchased P100,000 merchandise on account from BSA Co. Terms 2/10 n/30 FOB Shipping point. Freight of P2,000 was paid by BSA Co.
7. Sold P20,000 merchandise for cash. FOB Destination. Freight of P1,000 was paid by Cepe A. Ko.
8. P6,000 of the merchandise bought from BSA Co. were defective. Debit memo was given to BSA Co. and Credit memo was received in response.
10. Paid cash for a newspaper advertisement,…
Prepare a statement of owner’s equity for the year ended April 30, 2019. Jerome Foley, the owner, invested an additional $60,000 in the business during the year and withdrew cash of $40,000 for personal use. Jerome Foley, capital as of May 1, 2018, was $1,020,000. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. If a net loss is incurred or there is a decrease in owner’s equity, enter that amount as a negative number using a minus sign.
Chapter 1 Solutions
Financial Accounting
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The KEY to Understanding Financial Statements; Author: Accounting Stuff;https://www.youtube.com/watch?v=_F6a0ddbjtI;License: Standard Youtube License