Question

Please give me answers to 2-19

Chapter 2 Analyzing and Recording Transactions use the information in Exercise 2-16 to prepare an August statement of owner's equity for Help Today ind owners capital account balance at August I was $0, and the owner invested $102,000 cash in the company on August 2 Exercise 2-17 Preparing a statement owner's equity P3 Use the information in Exercise 2-16 to prepare an August 31 balance sheet for Help Today. Hint: Compute the owner's capital account balance as of August 31. Exercise 2-18 Preparing a balance sheet P3 Exercise 2-19 Analyzing changes in a company's equity P3 Compute the missing amount for each of the following separate companies in columns B through E. со Е CBS ABC CNN NBC 2 Equity beginning of year 5 0 5 0 $ 0 3 Owner investments during the year 110.000 ? 87.000 210,000 4 Owner withdrawals during the year ? (47,000) (10,000) 155,000 5. Net income foss for the year 22,000 90,000 (4,000) 6 Equity end of year 104.000 85.000 110.000 0 Posting errors are identified in the following table. In column (1). enter the amount of the difference be- Iween the two trial balance columns (debit and credit) due to the error. In column (2). identify the trial balance column (debit or credit) with the larger amount if they are not equal. In column (3), identify the account(s) affected by the error. In column (4), indicate the amount by which the account(s) in column (3) is under or overstated. Item (a) is completed as an example. Exercise 2-20 identifying effects of posting errors on the trial balance A1 P2 (1) Difference between Debit and Credit Columns (2) Column with the larger Total (3) Identity Accountis) Incorrectly Stated (4) Amount That Account(s) is Over or Understated Description of Posting Error $2.260 Credit Rent Expense Rent Expense understated $2,260 53.600 debit to Rent Expense is posted as a $1.340 debt. $6,500 credit to Cash is posted twice as two credits to Cast. $10.900 debit to the Withdrawals account is debited to Owner's Capital $2,050 debit to Prepaid Insurance is posted as a debit to Insurance Expense. $38.000 debit to Machinery is posted as a debit to Accounts Payable 55,850 credit to Services Revenue is posted as a $585 credit $1.390 debit to Store Supplies is not posted. You are told the column totals in a trial balance are not equal. After careful analysis, you discover only Exercise 2.2+ one error. Specifically, a correctly journalized credit purchase of an automobile for $18.950 is posted from Analyzing strat balance the journal to the ledger with an $18.950 debit to Automobiles and another $18.950 debit to Accountsertor Payable. The Automobiles account has a debit balance of $37,100 on the trial balance. (1) Answer each of 11 the following questions and (2) compute the dollar amount of any misstatement for parts a through d. a. Is the Debit column total of the trial balance overstated, understated, or correctly stated? b. Is the Credit column total of the trial balance overstated, understated, or correctly stated? c. Is the Automobiles account balance overstated, understated, or correctly stated in the trial balance? d. Is the Accounts Payable account balance overstated, understated, or correctly stated in the trial balance? Ir the Debit column total of the trial balance is $200.000 before correcting the error what is the total of the Credit column before correction?

Answer 1

Equity at the end of the year is calculated by adding the investment made during the year and deducting the withdrawals or drawing are made during the year. Net profit is added and net loss is deducted to arrive the ending equity balance.

Answers to 2-19 Missing amount of each campanies Rto G as follows: A. ABC $ CNN $ ीवृ० दचापालिकव चिलारेड ए४ 10,000 42000 87000 210000 3) awner Ihvestment during the year 4) owneris withchrawals dosing the year 5) Net Incomec lose) for the 2200090000 C4,000) (45000) year Equity end of year |Css00] |(28000)] 47009 CIl0,000) 19,4000 85000 [73000 110,000 3)0wners Inhvestiment during the year of ABC Company %$85000- $90000 4 $47000 = $42000 4) owners withdrawals during the year of CRS company =$ 104000 -$ 22000 -s110,000 = -$2806 5)Net Incame Closs) fr the yeer Of MBC compony 2S l1o 000 t 55000-$210,000 =-$45000 Equity end of year of CNN (empany 987000$ L'0,000 $4,000 $73000