Financial Accounting Problem Solving
EXERCISE 2-15A
a.
|
Life, Inc. Effect of Events on the Accounting Equation |
||||
|
|
||||
|
|
Assets |
= |
Stockholders’ Equity |
|
|
Event |
Cash |
Prepaid Rent |
= |
Retained Earnings |
|
1. Performed Services |
|
|
|
|
|
2. Prepaid Rent |
|
|
|
|
|
3. Used Rent |
|
|
|
|
|
Totals |
|
|
= |
|
|
|
|
|
|
|
*
b.
|
Life, Inc. Income Statement For the Year Ended December 31, 2016 |
|||
|
|
|
|
|
|
|
Revenue |
|
|
|
|
Expense |
|
|
|
|
|
|
|
|
|
Net Income |
|
|
|
|
|
|
|
|
Life, Inc. Balance Sheet As of December 31, 2016 |
||||
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
Cash |
|
|
|
|
|
Prepaid Rent |
|
|
|
|
|
Total Assets |
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity |
|
|
|
|
|
Retained Earnings |
|
|
|
|
|
Total Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
|
|
Total Liab. and Stockholders’ Equity |
|
|
|
|
|
|
|
|
|
EXERCISE 2-15A b. (cont.)
|
Life, Inc. Statement of Cash Flows For the Year Ended December 31, 2016 |
||||
|
|
|
|
|
|
|
|
Cash Flows From Operating Activities: |
|
|
|
|
|
Cash Receipt from Revenue |
|
|
|
|
|
Cash Payment for Rent |
|
|
|
|
|
Net Cash Flow from Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities: |
|
|
|
|
|
|
|
|
|
|
|
Net Change in Cash |
|
|
|
|
|
Plus: Beginning Cash Balance |
|
|
|
|
|
Ending Cash Balance |
|
|
|
|
|
|
|
|
|
c.
EXERCISE 2-19A
|
Hart Attorney At Law Effect of Transactions on the Financial Statements for 2016 |
||||||||||||||||||
|
|
||||||||||||||||||
|
|
|
Balance Sheet |
|
Income Statement |
|
Statement of |
||||||||||||
|
|
|
Assets |
= |
Liabilities |
+ |
S. Equity |
|
Rev |
|
Exp. |
= |
Net Inc. |
|
Cash Flows |
||||
|
No. |
|
Cash |
+ |
Supplies |
= |
Accts. Payable |
+ |
Unearn. Rev. |
+ |
Retained Earnings |
|
|
|
|
|
|
|
|
|
1. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
2. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
3. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
4. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
5. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
6. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
7. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
8. |
|
|
+ |
|
= |
|
+ |
|
+ |
|
|
|
|
|
= |
|
|
|
|
Totals |
|
51,600 |
+ |
200 |
= |
400 |
+ |
9,000 |
+ |
42,400 |
|
81,000 |
|
33,600 |
= |
47,400 |
|
51,600 NC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXERCISE 2-27A
|
|
Net Income |
Cash Flow from Operating Activities |
||
|
Event/Adj. |
Direction of Change |
Amount of Change |
Direction of Change |
Amount of Change |
|
a. Event Adj. |
|
|
|
|
|
b. Event Adj. |
|
|
|
|
|
b. Event No adj. |
|
|
|
|
|
d. Event Adj. |
|
|
|
|
|
e. Event No adj. |
|
|
|
|
|
f. Event No adj. |
|
|
|
|
|
f. Event No adj. |
|
|
|
|
|
g. Event No adj. |
|
|
|
|
|
h. Event No adj. |
|
|
|
|
EXERCISE 2-29A
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
EXERCISE 2-30A
a.
b.
c.
d.