1、Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: The company covered up the first report, and the local newspaper uncovered the companys secret. The company was forced to not locate here (Collier County). It became patent
2、ly clear that doing the least that is legally allowed is not enough.1-21.B 2.B 3.E 4.F 5.B 6.F 7.X8.E 9.X 10.B1-3a.$96,500 ($25,000 + $71,500)b.$67,750 ($82,750 $15,000)c.$19,500 ($37,000 $17,500)1-4a.$275,000 ($475,000 $200,000)b.$310,000 ($275,000 + $75,000 $40,000)c.$233,000 ($275,000 $15,000 $27
3、,000)d.$465,000 ($275,000 + $125,000 + $65,000)e.Net income: $45,000 ($425,000 $105,000 $275,000)1-5a.owners equity b.liability c.asset d.asset e.owners equity f. asset 1-6a.Increases assets and increases owners equity.b.Increases assets and increases owners equity.c.Decreases assets and decreases o
4、wners equity.d.Increases assets and increases liabilities.e.Increases assets and decreases assets.1-71.increase 2.decrease 3.increase 4.decrease1-8a.(1)Sale of catering services for cash, $25,000.(2)Purchase of land for cash, $10,000.(3)Payment of expenses, $16,000.(4)Purchase of supplies on account
5、, $800.(5)Withdrawal of cash by owner, $2,000.(6)Payment of cash to creditors, $10,600.(7)Recognition of cost of supplies used, $1,400.b.$13,600 ($18,000 $4,400)c.$5,600 ($64,100 $58,500)d.$7,600 ($25,000 $16,000 $1,400)e.$5,600 ($7,600 $2,000) 1-9It would be incorrect to say that the business had i
6、ncurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owners equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStatement of Owners EquityFor the Month Ended
7、 April 30, 2006Leo Perkins, capital, April 1, 2006$297,200Net income for the month$73,000Less withdrawals12,000Increase in owners equity61,000Leo Perkins, capital, April 30, 2006$358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended November 30, 2006Fees earned$232,120Operating expenses:Wa
8、ges expense$100,100Rent expense35,000Supplies expense4,550Miscellaneous expense3,150Total operating expenses142,800Net income$89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k 1-151.binvesting activity 2.aoperating activity3.cfinancing activity 4.aoperating activit
9、y1-16a.2003: $10,209 ($30,011 $19,802)2002: $8,312 ($26,394 $18,082)b.2003: 0.52 ($10,209 $19,802)2002: 0.46 ($8,312 $18,082)c.The ratio of liabilities to stockholders equity increased from 2002 to 2003, indicating an increase in risk for creditors. However, the assets of The Home Depot are more tha
10、n sufficient to satisfy creditor claims. Chapter. 22-1AccountAccountNumberAccounts Payable21Accounts Receivable12Cash11Corey Krum, Capital31Corey Krum, Drawing32Fees Earned41Land13Miscellaneous Expense53Supplies Expense52Wages Expense512-2Balance Sheet AccountsIncome Statement Accounts1.Assets11Cash
11、12Accounts Receivable13Supplies14Prepaid Insurance15 Equipment2.Liabilities21Accounts Payable22 Unearned Rent3.Owners Equity31Millard Fillmore, Capital32Millard Fillmore, Drawing4.Revenue41 Fees Earned5.Expenses51Wages Expense52Rent Expense53Supplies Expense59Miscellaneous Expense2-3a. and b.Account
12、 DebitedAccount CreditedTransactionTypeEffectTypeEffect(1)asset+owners equity+(2)asset+asset(3)asset+assetliability+(4)expense+asset(5)asset+revenue+(6)liabilityasset(7)asset+asset(8)drawing+asset(9)expense+assetEx. 24(1)Cash40,000Ira Janke, Capital40,000(2)Supplies1,800Cash1,800(3)Equipment24,000Ac
13、counts Payable15,000Cash9,000(4)Operating Expenses3,050Cash3,050(5)Accounts Receivable12,000Service Revenue12,000(6)Accounts Payable7,500Cash7,500(7)Cash9,500Accounts Receivable9,500(8)Ira Janke, Drawing5,000Cash5,000(9)Operating Expenses1,050Supplies1,0502-51.debit and credit (c)2.debit and credit (c)3.debit and credit (c)4.credit only (b)5.debit only (a)6.debit only (a)7.debit only (a)2-6a.Liabilitycreditf.Revenuecredit b.Assetdebit g.Assetdebitc.Assetdebith.Expensedebitd.Owners equity i.Assetdebit(Cindy
