Chapter 1

Please Note:

These templates contain formulas that, when the correct data is entered
into the correct cells, will help solve the problems. Formulas will appear
as a long dash with or without a dollar sign, or as "#DIV/0!" or "#REF!" or
"#VALUE". As data is entered, formulas will become numbers. Data
numbers should be entered without dollar signs or commas.

To determine which cells are involved in a formula, simply highlight the

cell containing the formula, and the formula will be displayed in the
Formula Bar. By placing the cursor into the Formula Bar and clicking
once, the cells in question will be highlighted and color-coded to match
the formula. Exit the formula by pressing the Escape key. Use this method
whenever the position of data cells is not obvious on the spreadsheet.

Hint: When footnotes contain calculations, enter data into the footnote cells
first, before entering data elsewhere.
Chapter 1, P 1.

1. Accounts arranged in equation form

2. Effects of transactions shown

Assets = Liabilities + Stockholders' Equity

Accounts Framing Store Accounts Common Retained Type of SE
Cash Receivable Supplies Equipment Payable Stock Earnings Transaction
a.
b. – — – $ —
bal. $— $ — $ —
c. — + + — —
bal. $— $ — $ — $ — $ —
d. – + — — — —
bal. $ — $— $ — $ — $ — $ —
e. + — — — — +
bal. $— $— $— $— $ — $—
f. — + — — — — +
bal. $— $— $— $— $— $ — $ —
g. – — — — — — –
bal. $— $— $— $— $— $ — $ —
h. + – — — — — —
bal. $— $— $— $— $— $ — $ —
i. – — — — – — —
bal. $ — $— $— $— $— $ — $ —
j. – — — — — — –
bal. $ — $— $— $— $— $ — $—

$ — $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P1-1

Chapter 1, P 2.

1. Accounts arranged in equation form

2. Effects of transactions shown

Assets = Liabilities + Stockholders' Equity

Accounts Delivery Accounts Common Retained Type of SE
Cash Receivable Supplies Motorbike Payable Stock Earnings Transaction
a.

b. — + + —
bal. $ — $ — $ — $ —
c. – + — — —
bal. $ — $ — $ — $ — $ —
d. — + — — — — +
bal. $ — $— $ — $ — $— $ — $ —
e. + — — — — — +
bal. $ — $— $ — $ — $— $ — $ —
f. – — — — – — —
bal. $ — $— $ — $ — $— $ — $ —
g. – — — — — — –
bal. $ — $— $ — $ — $ — $ — $ —
h. + – — — — — —
bal. $ — $— $ — $ — $ — $ — $ —
i. – — — — — — –
bal. $ — $ — $ — $ — $ — $ — $—

$ — $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P2-1

 Chapter 1, P 3.

1. Accounts arranged in equation form

2. Beginning balances entered
3. Effects of transactions shown

Assets = Liabilities + Stockholders' Equity

Accounts Office Office Accounts Common Retained Type of SE
Cash Receivable Supplies Equipment Payable Stock Earnings Transaction
bal.
a. – — — — — — –
bal. $— $— $ — $ — $— $ — $—
b. – — — — – — —
bal. $— $— $ — $ — $— $ — $—
c. — + — — — — +
bal. $— $— $ — $ — $ — $ — $—
d. + – — — — — —
bal. $— $— $ — $ — $— $ — $—
e. – — + — — — —
bal. $— $— $ — $ — $— $ — $—
f. – — — — — — –
bal. $— $— $ — $ — $— $ — $—
g. – — — — — — –
bal. $— $— $ — $ — $— $ — $—
h. – — — — — — –

bal. $— $— $ — $ — $— $ — $—
i. – — — + — — —
bal. $— $— $ — $ — $— $ — $—
j. + — — — — — +
bal. $— $— $ — $ — $— $ — $—
k. – — — — — — –
bal. $— $ — $ — $ — $— $ — $ —

$ — $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P3-1

 Chapter 1, P 4.

Verdun Plumbing Corporation

Income Statement
For the Month Ended June 30, 20xx

Revenues
Contract Revenue
Repair Revenue
Total Revenues $ —
Expenses
Salaries Expense
Rent Expense
Fuel Expense
Total Expenses —
Net Income $ —

Verdun Plumbing Corporation

Statement of Retained Earnings
For the Month Ended June 30, 20xx

Retained Earnings, June 1, 20xx $ —

Net Income for the Month —
Subtotal $ —
Less Dividends
Retained Earnings, June 30, 20xx $ —

Verdun Plumbing Corporation

Balance Sheet
June 30, 20xx

Assets Liabilities
Cash Accounts Payable
Accounts Receivable
Delivery Truck Stockholders' Equity
Tools Common Stock
Retained Earnings
Total Stockholders'
Equity —
Total Liabilities and
Total Assets $ — Stockholders' Equity $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P4-1

 Chapter 1, P 5.

1. Accounts arranged in equation form

2. Effects of transactions shown

Assets = Liabilities + Stockholders' Equity

Accounts Accounts Common Retained Type of SE
Cash Receivable Supplies Copier Payable Stock Earnings Transaction
a.

b. – — –
bal. $ — $ — $—
c. – + — —
bal. $ — $ — $ — $—
d. + — — +
bal. $ — $ — $ — $—
e. — + — — +
bal. $ — $ — $ — $ — $ —
f. – — + — — —
bal. $ — $ — $ — $ — $ — $ —
g. – — — — — –
bal. $ — $ — $ — $ — $ — $ —
h. — — + — + — —
bal. $ — $ — $ — $ — $ — $ — $ —
i. + – — — — — —
bal. $ — $— $ — $ — $ — $ — $ —
j. – — — — — — –
bal. $ — $— $ — $ — $ — $ — $ —
k. – — — — – — —
bal. $ — $— $ — $ — $ — $ — $ —
l. – — — — — — –
bal. $ — $— $ — $ — $ — $ — $—

$ — $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P5-1

 Chapter 1, P 5. (Continued)

3. Financial statements prepared

Arrow Copying Service, Inc.

Income Statement
For the Month Ended August 31, 20xx

Revenues
Copying Revenue $—
Expenses
Rent Expense $—
Wages Expense —
Utilities Expense —
Total Expenses —
Net Income $—

Arrow Copying Service, Inc.

Statement of Retained Earnings
For the Month Ended August 31, 20xx

Retained Earnings, August 1, 20xx $—

Net Income for the Month —
Subtotal $—
Less Dividends —
Retained Earnings, August 31, 20xx $—

Arrow Copying Service, Inc.

Balance Sheet
August 31, 20xx

Assets Liabilities
Cash $ — Accounts Payable $ —
Accounts Receivable —
Supplies — Stockholders' Equity
Copier — Common Stock $ —
Retained Earnings —
Total Stockholders'
Equity —
Total Liabilities and
Total Assets $ — Stockholders' Equity $ —

Copyright Houghton Mifflin Company. All rights reserved. Ch.1--P5-2

Chapter 1, P 6.

1. Accounts arranged in equation form

2. Effects of transactions shown

Assets = Liabilities + Stockholders' Equity

Accounts Computer Systems Accounts Common Retained Type of SE
Cash Receivable Supplies Equipment Library Payable Stock Earnings Transaction
a.

b. – — — –
bal. $ — $ — $ — $—
c. – + — — —
bal. $ — $ — $ — $ — $—
d. — + — — + — —
bal. $ — $— $ — $ — $— $ — $—
e. + — — — — — +
bal. $ — $— $ — $ — $— $ — $—
f. — + — — — — — +
bal. $ — $— $— $ — $ — $— $ — $ —
g. – — — — — — — –
bal. $ — $— $— $ — $ — $— $ — $ —
h. + – — — — — — —
bal. $ — $— $— $ — $ — $ — $ — $ —
i. – — — — — – — —
bal. $ — $— $— $ — $ — $— $ — $ —
j. – — — — — — — –
bal. $ — $— $— $ — $ — $— $ — $ —

$ — $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P6-1

 Chapter 1, P 7.

Wichita Riding Club, Inc.

Income Statement
For the Month Ended November 30, 20xx

Revenues
Riding Lesson Revenue
Locker Rental Revenue
Total Revenues $ —
Expenses
Salaries Expense
Feed Expense
Utilities Expense
Total Expenses —
Net Income $ —

Wichita Riding Club, Inc.

Statement of Retained Earnings
For the Month Ended November 30, 20xx

Retained Earnings, November 1, 20xx

Net Income for the Month —
Subtotal $ —
Less Dividends
Retained Earnings, November 30, 20xx $ —

Wichita Riding Club, Inc.

Balance Sheet
November 30, 20xx

Assets Liabilities
Cash Accounts Payable
Accounts Receivable
Supplies Stockholders' Equity
Land Common Stock
Building Retained Earnings
Horses Total Stockholders'
Equity —
Total Liabilities and
Total Assets $ — Stockholders' Equity $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P7-1

 Chapter 1, P 8.

1. Accounts arranged in equation form

2. Effects of transactions shown

Assets = Liabilities + Stockholders' Equity

Accounts Auto Accounts Common Retained Type of SE
Cash Receivable Supplies Limousine Payable Stock Earnings Transaction
a.

b. – + —
bal. $ — $ — $ —
c. — + — + —
bal. $ — $ — $ — $— $ —
d. + — — — — +
bal. $ — $ — $ — $— $ — $ —
e. – — — — — –
bal. $ — $ — $ — $— $ — $ —
f. – — — — — –
bal. $ — $ — $ — $— $ — $ —
g. — — — + — –
bal. $ — $ — $ — $ — $ — $ —
h. + — — — + —

bal. $ — $ — $ — $ — $ — $ —
i. – — — – — —
bal. $ — $ — $ — $— $ — $ —
j. — + — — — — +
bal. $ — $ — $ — $ — $— $ — $ —
k. – — — — — — –
bal. $ — $— $ — $ — $— $ — $ —
l. – — — — — — –
bal. $ — $— $ — $ — $— $ — $ —

$ — $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P8-1

 Chapter 1, P 8. (Continued)

3. Financial statements prepared

AAFast Limousine Service, Inc.

Income Statement
For the Month Ended April 30, 20xx

Revenues
Fare Revenue $ —
Expenses
Wages Expense $—
Gasoline Expense —
Car Wash Expense —
Repair Expense —
Total Expenses —
Net Income $ —

AAFast Limousine Service, Inc.

Statement of Retained Earnings
For the Month Ended April 30, 20xx

Retained Earnings, April 1, 20xx $ —

Net Income for the Month —
Subtotal $ —
Less Dividends —
Retained Earnings, April 30, 20xx $ —

AAFast Limousine Service, Inc.

Balance Sheet
April 30, 20xx

Assets Liabilities
Cash $ — Accounts Payable $ —
Accounts Receivable —
Auto Supplies — Stockholders' Equity
Limousine — Common Stock $ —
Retained Earnings —
Total Stockholders'
Equity —
Total Liabilities and
Total Assets $ — Stockholders' Equity $ —
Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P8-2
Chapter 1, P 8. (Continued)

AAFast Limousine Service, Inc.

Statement of Cash Flows
For the Month Ended April 30, 20xx

Cash Flows from Operating Activities

Net Income $ —
Adjustments to Reconcile Net Income to Net
Cash Flows from Operating Activities
Increase in Accounts Receivable $ —
Increase in Auto Supplies —
Increase in Accounts Payable — —
Net Cash Flows from Operating Activities $ —
Cash Flows from Investing Activities
Purchase of Limousine $ —
Net Cash Flows from Investing Activities —
Cash Flows from Financing Activities
Investment by Stockholders $ —
Dividends —
Net Cash Flows from Financing Activities —
Net Increase (Decrease) in Cash $ —
Cash at Beginning of Month —
Cash at End of Month $ —

Copyright ã Houghton Mifflin Company. All rights reserved. Ch.1--P8-3