Accounting Problem Sets
BA220 – Financial Accounting
Week 1
Answer Key
Textbook: 9th Edition
EXERCISE 1-9A
a.
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Cash |
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Land |
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Creditors |
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Stockholders’ Equity |
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Bal. |
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b. Creditor’s Claim ÷ Total Assets = Percent of Total
÷ =
c. Investor’s Claim ÷ Total Assets = Percent of Total
d.
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Cash |
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Creditors |
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Stockholders’ Equity |
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Bal. |
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EXERCISE 1-10A
a.
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Stockholders’ Equity |
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Company |
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Assets |
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Liabilities |
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Common Stock |
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Retained Earnings |
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Allen |
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White |
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c.
d.
EXERCISE 1-4A
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Accounting Equation |
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Stockholders’ Equity |
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Common |
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Retained |
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Company |
Assets |
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Liabilities |
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Stock |
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Earnings |
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A |
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B |
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C |
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D |
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EXERCISE 1-7A
a.
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Assets |
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Liabilities |
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Stockholders’ Equity |
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Cash |
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Note Payable |
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Common Stock |
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Retained Earnings |
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Retained Earnings = – – =
b. & c.
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Moss Company Effect of 2017 Transactions on the Accounting Equation |
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Assets |
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Liabilities |
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Stockholders’ Equity |
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Notes |
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Common |
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Retained |
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Cash |
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Payable |
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Stock |
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Earnings |
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Beginning Balances |
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1. Earned Revenue |
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2. Paid expenses |
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3. Paid dividend |
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Ending Balance |
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d.
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Cash |
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Note Payable |
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Common Stock |
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Retained Earnings |
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Liabilities + Stockholders’ Equity = + + =
Assets = Liabilities + Stockholders’ Equity
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e.
EXERCISE 1-7A
EXERCISE 1-7A
a.
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Assets |
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Liabilities |
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Stockholders’ Equity |
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Cash |
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Note Payable |
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Common Stock |
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Retained Earnings |
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Retained Earnings = – – =
b. & c.
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Moss Company Effect of 2017 Transactions on the Accounting Equation |
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Assets |
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Liabilities |
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Stockholders’ Equity |
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Notes |
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Common |
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Retained |
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Cash |
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Payable |
+ |
Stock |
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Earnings |
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Beginning Balances |
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1. Earned Revenue |
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2. Paid expenses |
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3. Paid dividend |
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Ending Balance |
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d.
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Cash |
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Note Payable |
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Common Stock |
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Retained Earnings |
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Liabilities + Stockholders’ Equity = _______ + __________ + =
Assets = Liabilities + Stockholders’ Equity
=
e.
EXERCISE 1-6A
a.
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Better Corporation Accounting Equation for 2016 |
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Assets |
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Liabilities |
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Stockholders’ Equity |
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Event |
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Cash |
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Land |
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Notes Payable |
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Com. Stock |
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Retained Earnings |
Acct. Title/RE |
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Bal. 1/1/16 |
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1. Pur. Land |
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2. Issued stk. |
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3. Provide Svc. |
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4. Paid Exp. |
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5. Loan |
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6. Paid Div. |
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7. Land Value |
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Totals |
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b.
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Assets |
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Liabilities |
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Stockholders’ Equity |
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c. The balances of total assets, liabilities and stockholders’ equity will be the same on January 1, 2017 as the balances on December 31, 2016. (See b. above)
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Assets |
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Liabilities |
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Stockholders’ Equity |
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