Financial Accounting Information for Decisions Unit 1 Assignment Problem 1-1A ,1-8A and Problem 2-3A Answer

Problem 1-1A)

Balance Sheet Income Statement Statement of
Cash Flows

Transaction Total
Assets Total
Liab. Total
Equity Net
Income Operating Activities Financing Activities Investing Activities
1 Owner invests cash for stock
+
+
+
2 Incurs legal costs on credit
+
–
–
3 Pays cash for employee wages
–
–
–
–
Problem 1-8A)

Assets = Liabilities + Equity
Date Cash + Accounts Receivable + Office Equipment = Accounts
Payable + Common Stock – Dividends + Revenues – Expenses

May 1 +$60,000 = + $60,000
1 – 3,200 = – $3,200
3 + $1,680 = + $1,680
5 – 800 = – 800

Part 3

THE SIMPSON CO.
Income Statement
For Month Ended May 31
Revenues:
Consulting services revenue $10,400
Expenses:
Rent expense $3,200
Salaries expense 1,700
Advertising expense 60
Cleaning expense 800
Telephone expense 200
Utilities expense 480
Total expenses 6,440
Net income $ 3,960

Problem 2-3A)

Part 1

FABIANO DISTRIBUTION
Balance Sheet
December 31, 2010
Assets Liabilities
Cash $ 52,500 Accounts payable $ 7,500
Accounts receivable 28,500
Office supplies 4,500
Trucks 54,000 Equity
Office equipment 138,000 Total equity 270,000
Total assets $277,500 Total liabilities and equity $277,500

FABIANO DISTRIBUTION
Balance Sheet
December 31, 2011……………………………………………………………..