Solutions to PS

Quiz #1

21 Cash 77,000
Accounts Receivable 56,000
Notes Receivable 244,000
Prepaid Expense 56,700
Property, Plant & Equipment 750,000
Total assets 1,183,700

22 Accounts Payable 65,000

Notes Payable 120,000
Unearned Revenue 15,345
Total liabilities 200,345

23 Total Assets 1,183,700

Total Liabilities 200,345
Faith D. Nakpil, Capital 1,384,045

24 Beginning equity 5,000

Add: Net Income
Revenues 8,000
Less: Expenses 6,000 2,000
Equity, end 7,000

25 Ending Equity 70,000

Less: Beginning Equity 50,000
Profit 20,000

26 A B C D
Revenues 320,000 320,000 320,000 320,000
Expenses 280,000 360,000 220,000 360,000
Profit (Loss) 40,000 (40,000) 100,000 (40,000)
incorrect incorrect incorrect

27 A B C D
Revenues 360,000 580,000 630,000 630,000
Expenses 480,000 480,000 480,000 480,000
Profit (Loss) (120,000) 100,000 150,000 150,000
incorrect incorrect incorrect

28 Total assets 100,000

Total liabilities 80,000
Owner's equity 20,000
29 Professional Fees 260,000
Expenses
Salaries & Wages 20,000
Rent Expense 15,000 35,000
Net Income 225,000

30 Land 200,000
Building 800,000
Total PPE 1,000,000

31 Beginning balance 500,545

Net Income 120,445
Additional investment 100,000
Total 720,990
Ending balance 500,000
Withdrawals 220,990

32 Revenues 1,000,000
Expenses 300,000
Net profit 700,000