Name Chapter 1 Brief Exercises

Section
Date

BE1.1

1 (a) Shared control, tax advantages, increased skills and resources. 1

2 2
3 (b) Simple to set up and maintains control with owner. 3
4 4
5 (c) Easier to transfer ownership and raise funds, no personal liability. 5
6 6
7 BE 1.2 7
8 (a) Investors in common stock 8
9 (b) Marketing managers 9
10 (c) Creditors 10
11 (d) Chief Financial Officer 11
12 (e) Internal Revenue Service 12
13 13
14 BE1.3 14
15 (a) Cash received from customers 15
16 (b) Cash paid to stockholders (dividends) 16
17 (c) Cash received from issuing new common stock 17
18 (d) Cash paid to suppliers 18
19 (e) Cash paid to purchase a new office building 19
20 20
21 BE1.4 21
22 (a) Advertising expense 22
23 23
24 (b) Service revenue 24
25 25
26 (c) Insurance expense 26
27 27
28 (d) Salaries and wages expense 28
29 29
30 (e) Dividends 30
31 31
32 (f) Rent revenue 32
33 33
34 (g) Utilities expense 34
35 35
36 (h) Cash purchase of equipment 36
37 37
38 (i) Issued common stock for cash 38
39 39
40 40
Name Chapter 1 Brief Exercises Continued
Section
Date

BE1.5
KAROL COMPANY
Balance Sheet
December 31, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 Liabilities and Stockholders' Equity 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 BE1.6 16
17 (a) Income tax expense 17
18 (b) Inventory 18
19 (c) Accounts payable 19
20 (d) Retained earnings 20
21 (e) Equipment 21
22 (f) Sales revenue 22
23 (g) Cost of goods sold 23
24 (h) Common stock 24
25 (i) Accounts receivable 25
26 (j) Interest expense 26
27 27
28 BE1.7 28
29 (a) Revenue during the period 29
30 (b) Supplies on hand at the end of the year 30
31 (c) Cash received from issuing new bonds during the period 31
32 (d) Total debts outstanding at the end of the period 32
33 33
34 BE1.8 34
35 (a) 35
36 36
37 (b) 37
38 38
39 (c) 39
40 40
Name Chapter 1 Brief Exercises Concluded
Section
Date

BE1.9

1 (a) Stockholders' equity = 1

2 2
3 3
4 4
5 (b) Total assets = 5
6 6
7 7
8 8
9 (c) Total liabilities = 9
10 10
11 11
12 12
13 13
14 BE1.10 14
15 (a) Accounts payable 15
16 (b) Salaries and wages payable 16
17 (c) Equipment 17
18 (d) Supplies 18
19 (e) Common stock 19
20 (f) Notes payable 20
21 21
22 22
23 23
24 24
25 25
26 26
27 BE1.11 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name DO IT! 1.1 to 1.3a
Section
Date

DO IT! 1.1

1 (a) Easier to transfer ownership 1

2 (b) Easier to raise funds 2
3 (c) More owner control 3
4 (d) Tax advantages 4
5 (e) No personal legal liability 5
6 6
7 DO IT! 1.2 7
8 (a) Issuance of ownership shares 8
9 (b) Land purchased 9
10 (c) Amounts owed to suppliers 10
11 (d) Bonds payable 11
12 (e) Amount recorded from selling a product 12
13 (f) Cost of advertising 13
14 14
15 DO IT! 1.3a 15
16 GRAY CORPORATION 16
17 Income Statement 17
18 For the Year Ended December 31, 2022 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 GRAY CORPORATION 29
30 Retained Earnings Statement 30
31 For the Year Ended December 31, 2022 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name DO IT!1.3a Concluded and 1.3b
Section
Date

DO IT! 1.3a (Concluded)

GRAY CORPORATION
Balance Sheet
December 31, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 7
8 Liabilities and Stockholders' Equity 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 DO IT! 1.3b 21
22 (1) Description of ability to pay near-term obligations 22
23 (2) Unqualified opinion 23
24 (3) Details concerning liabilities, too voluminous to be included 24
25 in the statements 25
26 (4) Description of favorable and unfavorable trends 26
27 (5) Certified Public Accountant (CPA) 27
28 (6) Descriptions of significant accounting policies 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name Exercises 1.1 and 1.2
Section
Date

E1.1

1 (a) 1
2 (b) 2
3 (c) 3
4 (d) 4
5 (e) 5
6 (f) 6
7 (g) 7
8 (h) 8
9 9
10 10

E1.2

1 a. Assets = Liabilities and Stockholders' Equity. 1

2 b. An individual who has met certain criteria and is thus allowed to 2
3 perform audits of corporations. 3
4 c. Payments of cash from a corporation to its stockholders. 4
5 d. The cost of assets consumed or services used in the process of 5
6 generating revenues. 6
7 e. Amounts owed to creditors in the form of debts and other obligations. 7
8 f. A section of the annual report that presents management's views on 8
9 the company's ability to pay near-term obligations, its ability to fund 9
10 operations and expansion, and its results of operation. 10
11 g. The amount by which expenses exceed revenues. 11
12 h. The increase in assets or decrease in liabilities resulting from the sale 12
13 of goods or the performance of services in the normal course of 13
14 business. 14
15 i. Regulations passed by Congress to reduce unethical corporate 15
16 behavior. 16
17 j. A business owned by one person. 17
18 k. The owner's claim to assets. 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
Name Exercise 1.3(a)
Section
Date Types of Activities

(a)

Financing Investing Operating

1 Aritibi Consolidated Inc. 1
2 2
3 3
4 Cal State University - 4
5 Northridge 5
6 Student Union 6
7 7
8 Oracle Corporation 8
9 9
10 10
11 Aquilini Investment 11
12 Group 12
13 13
14 Grant Thornton LLP 14
15 15
16 16
17 Southwest Airlines 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
Name Exercises 1.3(b) and 1.4
Section
Date

E1.3(b)

1 Financing: 1
2 2
3 3
4 4
5 5
6 Investing: 6
7 7
8 8
9 9
10 10
11 11
12 12
13 Operating: 13
14 14
15 15
16 16
17 17
18 18

E1.4

1 Accounts payable 1
2 Accounts receivable 2
3 Equipment 3
4 Sales revenue 4
5 Service revenue 5
6 Inventory 6
7 Mortgage payable 7
8 Supplies expense 8
9 Rent expense 9
10 Salaries and wages expense 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
Name Exercise 1.5
Section
Date Benser Co.

BENSER CO.
Income Statement
For the Year Ended December 31, 2022
1 Revenues: 1
2 2
3 3
4 Expenses: 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15

BENSER CO.
Retained Earnings Statement
For the Year Ended December 31, 2022
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
Name Exercise 1.6
Section
Date Merck and Co.

(a)
MERCK and CO.
Income Statement
For the Year Ended December 31, 2022
(in millions)
1 Revenues: 1
2 2
3 3
4 4
5 5
6 Expenses: 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14

MERCK and CO.

Retained Earnings Statement
For the Year Ended December 31, 2022
(in millions)
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
Name Exercise 1.6 Concluded
Section
Date Merck and Co.

(b)

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
Name Exercises 1.7 and 1.9
Section
Date

E1.7
ZHENG INC.
Retained Earnings Statement
For the Year Ended December 31, 2022
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15

E1.9

1 (a) 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 (b) 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
Name Exercise 1.8
Section
Date Randall Inc.

RANDALL INC.
Balance Sheet
December 31, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 Liabilities and Stockholders' Equity 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 *Compute total stockholders' equity: 23
24 24
25 25
26 26
27 **Compute retained earnings: 27
28 28
29 29
30 30
Name Exercise 1.10
Section
Date Lonyear Inc.

(a)

1 Cash 1
2 Retained earnings 2
3 Cost of goods sold 3
4 Salaries and wages expense 4
5 Prepaid insurance 5
6 Inventory 6
7 Accounts receivable 7
8 Sales revenue 8
9 Notes payable 9
10 Accounts payable 10
11 Service revenue 11
12 Interest expense 12
13 13
14 14
15 15

(b)
LONYEAR INC.
Income Statement
For the Year Ended December 31, 2022
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
Name Exercise 1.11
Section
Date Familia Inc.

(a)

1 Interest expense 1
2 Interest payable 2
3 Notes payable 3
4 Sales revenue 4
5 Cash 5
6 Salaries and wages expense 6
7 Equipment (net) 7
8 Depreciation expense 8
9 Supplies 9
10 Common stock 10
11 Supplies expese 11
12 12
13 13
14 14
15 15

(b)
FAMILIA INC.
Income Statement
For the Year Ended December 31, 2022
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
Name Exercise 1.12
Section
Date Donavan, Inc.

DONAVAN, INC.
Balance Sheet

1 Assets 1
2 Cash $7,000 2
3 Inventory 10,000 3
4 Building 45,000 4
5 Total assets $62,000 5
6 6
7 Liabilities and Stockholders' Equity 7
8 Liabilities and Stockholders' Equity 8
9 Accounts payable $5,000 9
10 Stockholders' equity 10
11 Common stock (a) 11
12 Retained earnings (b) 12
13 Total liabilities and stockholders' equity $62,000 13
14 14
15 15
16 16
17 Income Statement 17
18 Revenues $85,000 18
19 Cost of goods sold (c) 19
20 Administrative expenses 10,000 20
21 Net income (d) 21
22 22
23 23
24 Retained Earnings Statement 24
25 Beginning retained earnings $12,000 25
26 Net income (e) 26
27 Dividends 5,000 27
28 Ending retained earnings $27,000 28
29 29
30 30
Name Exercise 1.13
Section
Date Oway Corporation

OWAY CORPORATION
Balance Sheet

1 Assets 1
2 Cash $29,000 2
3 Supplies (a) 3
4 Equipment (net) 65,000 4
5 Total assets (b) 5
6 6
7 Liabilities and Stockholders' Equity 7
8 Liabilities and Stockholders' Equity 8
9 Notes payable $22,000 9
10 Stockholders' equity 10
11 Common stock 38,000 11
12 Retained earnings (c) 12
13 Total liabilities and stockholders' equity (d) 13
14 14
15 15
16 16
17 Income Statement 17
18 Revenues $53,000 18
19 Depreciation expense (e) 19
20 Salaries and wages expense 10,000 20
21 Interest expense 1,000 21
22 Net income $25,000 22
23 23
24 Retained Earnings Statement 24
25 Beginning retained earnings (f) 25
26 Net income (g) 26
27 Less: Dividends 6,000 27
28 Ending retained earnings $37,000 28
29 29
30 30
Name Exercise 1.14
Section
Date Otay Lakes Park

(a)

1 1
2 2
3 3
4 4
5 5

(b)
OTAY LAKES PARK
Retained Earnings Statement
For the Year Ended December 31, 2022
1 1
2 2
3 3
4 4
5 5

OTAY LAKES PARK

Balance Sheet
December 31, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 7
8 Liabilities and Stockholders' Equity 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Name Exercise 1.14 Concluded
Section
Date Otay Lakes Park

(c)

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
Name Exercise 1.15
Section
Date Kellogg Company

(a)

1 Retained earnings
2 Cost of goods sold
3 Selling and administrative expenses
4 Cash
5 Notes payable
6 Interest expense
7 Bonds payable
8 Inventory
9 Sales revenue
10 Accounts payable
11 Common stock
12 Income tax expense
13
14
15

(b)
KELLOGG COMPANY
Income Statement
For the Year Ended December 31, 2022
(in millions)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Exercise 1.15

ogg Company

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Name Exercise 1.16
Section
Date Williams Corporation

(a)
WILLIAMS CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2022
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20

(b)

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
Name Exercise 1.17
Section
Date Southwest Airlines

(a)
SOUTHWEST AIRLINES
Statement of Cash Flows
For the Year Ended December 31, 2022
(in millions)
1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24

(b)

1 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 10
Name Exercise 1.18
Section
Date Beeson Company

BEESON COMPANY
Balance Sheet
December 31, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 Liabilities and Stockholders' Equity 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
Name Exercise 1.19
Section
Date Nike, Inc.

(All dollars are in millions)

(a)
1 Assets:
2
3
4
5
6
7
8
9 Liabilities:
10
11
12
13
14
15
16 Stockholders' Equity:
17
18
19
20
21
22
23
24 (b) Stockholders'
25 Assets = Liabilities + Equity
26
27
28
29 (c)
30
31
32
33
34
35
Exercise 1.19

Nike, Inc.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Name Exercises 1.20 and 1.21
Section
Date

E1.20

Walco Gunther
Corporation Enterprises
1 Beginning of year 1
2 Total assets $110,000 $150,000 2
3 Total liabilities (d) 70,000 3
4 Total stockholders' equity (a) 70,000 4
5 End of year 5
6 Total assets (b) 180,000 6
7 Total liabilities 120,000 55,000 7
8 Total stockholders' equity (e) 60,000 8
9 Changes during year in retained earnings 9
10 Dividends (c) 5,000 10
11 Total revenues (f) 215,000 11
12 Total expenses 165,000 80,000 12
13 13

E1.21

1 (a) 1
2 (b) 2
3 (c) 3
4 (d) 4
5 (e) 5
6 (f) 6
7 7
Name Problem 1.1
Section
Date Forms of Business Organization

1 (a) 1
2 2
3 3
4 4
5 5
6 6
8 (b) 8
9 9
10 10
11 11
12 12
13 13
14 14
15 (c) 15
16 16
17 17
18 18
19 19
20 (d) 20
21 21
22 22
23 23
24 24
25 25
26 26
27 (e) 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name Problem 1.2
Section
Date Users and Uses of Financial Statements

1 (a) 1
2 2
3 3
4 4
5 5
6 6
7 (b) 7
8 8
9 9
10 10
11 11
12 12
13 (c) 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 (d) 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name Problem 1.3
Section
Date Elite Service Co.

(a)
ELITE SERVICE CO.
Income Statement
For the Month Ended June 30, 2022
1 Revenues
2
3
4 Expenses
5
6
7
8
9
10
11
12 Net income
13

ELITE SERVICE CO.

Retained Earnings Statement
For the Month Ended June 30, 2022
1
2
3
4
5
6
 Problem 1.3

e Service Co.

1
2
3
4
5
6
7
8
9
10
11
12
13

1
2
3
4
5
6
Name Problem 1.3 Concluded
Section
Date Elite Service Co.

(a) (Continued)
ELITE SERVICE CO.
Balance Sheet
June 30, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 7
8 Liabilities and Stockholders' Equity 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20

(b) & (c)

1 (b) 1
2 2
3 3
4 4
5 5
6 (c) 6
7 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
Name Problem 1.4
Section
Date Reese Inc.

REESE INC.
Income Statement
For the Month Ended October 31, 2022
1 Revenues
2
3
4 Expenses
5
6
7
8
9
10 Net income
11
12
13

REESE INC.
Retained Earnings Statement
For the Month Ended October 31, 2022
1
2
3
4
5
6
Problem 1.4

Reese Inc.

1
2
3
4
5
6
7
8
9
10
11
12
13

1
2
3
4
5
6
Name Problem 1.4 Concluded
Section
Date Reese Inc.

REESE INC.
Balance Sheet
June 30, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 7
8 Liabilities and Stockholders' Equity 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
Name Problem 1.5
Section
Date Rojo Corporation

(a)
ROJO CORPORATION
Statement of Cash Flows
For the Year Ended December 31, 2022
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

(b)

1
2
3
4
5
6
7
8
 Problem 1.5

o Corporation

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

1
2
3
4
5
6
7
8
Name Problem 1.6
Section
Date Micado Corporation

(a)

1 1. 1
2 2
3 3
4 4
5 5
6 6
7 7
8 2. 8
9 9
10 10
11 11
12 12
13 13
14 3. 14
15 15
16 16
17 17
18 18
19 19
20 20

(b)
MICADO CORPORATION
Balance Sheet
December 31, 2022
1 Assets 1
2 2
3 3
4 4
5 5
6 6
7 Liabilities and Stockholders' Equity 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
Name CT1.1 Financial Reporting Problem
Section
Date Apple Inc.

1 (a) 1
2 2
3 3
4 4
5 (b) 5
6 6
7 7
8 (c) 8
9 9
10 10
11 11
12 (d) 12
13 13
14 14
15 15
16 (e) 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name CT1.2 Comparative Analysis Problem
Section
Date Columbia Sportswear Company vs. Under Armour, Inc.

(a)
Columbia
Sportswear Under
(amounts in thousands) Company Armour, Inc.
1 1. Total liabilities 1
2 2. Net property, plant and equipment 2
3 3. Net cash provided (used) by investing activities 3
4 4. Net income 4
5 5
6 6
7 (b) 7
8 8
9 9
10 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 19
20 20
21 21
22 22
23 23
24 24
25 25
26 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name CT1.3 Interpreting Financial Statements
Section
Date Xerox

1 (a) 1
2 2
3 3
4 4
5 5
6 6
7 7
8 8
9 9
10 (b) 10
11 11
12 12
13 13
14 14
15 15
16 16
17 17
18 18
19 (c) 19
20 20
21 21
22 22
23 23
24 24
25 25
26 (d) 26
27 27
28 28
29 29
30 30
31 31
32 32
33 33
34 34
35 35
36 36
37 37
38 38
39 39
40 40
Name CT1.4 Real-World Focus
Section
Date Company Information

1 (a) 1
2 2
3 3
4 4
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Name CT1.5 Real-World Focus
Section
Date Wall Street Journal Online Article

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Name CT1.6 Decision-Making Across the Organization
Section
Date Johnson & Johnson

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Name CT1.7 Communication Activity
Section
Date Samco Company, Inc.

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Name CT1.7 Communication Activity Concluded
Section
Date Samco Company, Inc.

SAMCO COMPANY, INC.

Balance Sheet
December 31, 2022
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8 Liabilities and Stockholders' Equity 8
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Name CT1.8 Ethics Case
Section
Date Investment Rules for CPAs

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Name CT1.9 All About You
Section
Date The Ethics of Financial Aid

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