Homework Answers
IB-8:
1. Under US GAAP, under no circumstances can a company write up its fixed assets. Therefore, the value of the property remains at $ 100,000.
2. Using mark-to-market, LEAH's property would be revalued to $ 7,000,000.
Historical cost is the cost at which a transaction is originally entered into, while the current cost is the fair market value of an asset, or the value at which the asset can be currently sold in the market.
IB-6:
| No. | Transaction | Effect on Accounting Equation |
| a. | April borrowed $ 6,400 from a bank on a note | Assets ( cash ) increased |
| Liabilities ( notes payable) increased | ||
| b. | April purchased a desk and two chairs for $ 1,600 cash | Asset ( furniture ) increased |
| Asset ( cash) decreased | ||
| c. | April purchased supplies on account $ 700 | Asset ( supplies) increased |
| Liabilities ( accounts payable) increased. | ||
| d. | April provided services to others for $ 8,300 cash | Asset ( cash) increased |
| Owner's Equity ( service revenue) increased | ||
| e. | April provided services to others for $ 2,900 on account | Asset ( accounts receivable) increased |
| Owner's Equity ( service revenue) increased | ||
| f. | April paid $ 690 for a newspaper ad | Asset( cash) decreased |
| Owner's Equity (advertisement expense) decreased. | ||
| g. | April collected $ 900 of the money... | Asset ( cash ) increased |
| Asset ( accounts receivable) decreased | ||
| h. | April paid off $ 280 of its supplies account | Asset ( cash ) decreased |
| Liabilities ( accounts payable) decreased | ||
| i. | April paid its utility bill in the amount of $ 240 cash | Asset ( cash ) decreased |
| Owner's Equity ( retained earnings /utilities expense) decreased | ||
| j. | April paid a dividend to its investors | Asset ( cash ) decreased |
| Owners Equity ( retained earnings) decreased | ||
| k. | April paid off half of its bank note | Owner's Equity ( common stock ) increased |
| Liabilities ( notes payable) decreased |
Add Answer to:
1B-8. LEAH Inc. purchases a parcel of land for $100,000. Sometime later a freeway is built...
Determine which accounts increase and/or decrease for each of the transactions. 1B-6. (Similar to problem 1B-2)...
Determine which accounts increase and/or decrease for each of
the transactions.
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased APRIL borrowed $8,000 from the bank on a note. a. b. APRIL purchased a desk and two chairs for $1,500 cash. C. APRIL purchased supplies on account for $700. d....
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events...
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased a. APRIL borrowed $8,000 from the bank on a note. b. APRIL purchased a desk and two chairs for $1,500 cash. c. APRIL purchased supplies on account for $700. d. APRIL provided services to others for $7,200 cash. e. APRIL provided...
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events...
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased a. b. é osobis APRIL borrowed $6,400 from the bank on a note. APRIL purchased a desk and two chairs for $1,600 cash. APRIL purchased supplies on account for $700. APRIL provided services to others for $8,300 cash. APRIL provided services...
I just need to fill out the chart for IB-7 but IB-6 is the information provided...
I just need to fill out the chart for IB-7 but IB-6 is the
information provided to solve IB-7
We were unable to transcribe this imageWe were unable to transcribe this image1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased APRIL borrowed $8,000 from the bank on a note. a....
Diana Mark is the president of servicesPro, Inc., a company that provides temporary employees for not-for-profit...
Diana Mark is the president of servicesPro, Inc., a company that provides temporary employees for not-for-profit companies. ServicesPro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transaction for the first two weeks of April. April 2 Purchased and received office supplies for $600 on account April 5 Billed the Local United Way office $3400 for temporary services provided April 8 Paid $270 for...
Diana Mark is the president of servicesPro, Inc., a company that provides temporary employees for not-for-profit...
Diana Mark is the president of servicesPro, Inc., a company that provides temporary employees for not-for-profit companies. ServicesPro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transaction for the first two weeks of April. April 2 Purchased and received office supplies for $600 on account April 5 Billed the Local United Way office $3400 for temporary services provided April 8 Paid $270 for...
During its first month of operation, the Leonard Landscaping Company, which, specializes in landscaping services, completed...
During its first month of operation, the Leonard Landscaping Company, which, specializes in landscaping services, completed the following transactions. April Transactions Date Transaction Description April 1 Started a landscaping business by making a $50,000 deposit in a company bank account, in exchange for 5,000 shares of $10 par value common stock. April 1 Purchased insurance for the year and paid $3,600 cash. April 1 Paid monthly rental of $2,500 cash on a warehouse to store the landscaping equipment. April 3...
April Transactions Date Transaction Description April 1 Started a landscaping business by making a $50,000 deposit...
April Transactions Date Transaction Description April 1 Started a landscaping business by making a $50,000 deposit in a company bank account, in exchange for 5,000 shares of $10 par value common stock. April 1 Purchased insurance for the year and paid $3,600 cash. April 1 Paid monthly rental of $2,500 cash on a warehouse to store the landscaping equipment. April 3 Purchased landscaping equipment from Toro for $15,000, paying a downpayment of $10,000 cash, and $5,000 on account. April 5...
Diana Mark is the president of ServicePro, Inc., a company that provides temporary employees for not-for-profit...
Diana Mark is the president of ServicePro, Inc., a company that provides temporary employees for not-for-profit companies. ServicePro has been operating for five years; its revenues are increasing with each passing year. You have been hired to help Diana in analyzing the following transactions for the first two weeks of April: April 2 Purchased and received office supplies for $1,000 on account. April 5 Billed the local United Way office $5,000 for temporary services provided. April 8 Paid $350 for...
a. Received contributions from five investors of $60,000 in cash ($12,000 each), a barn valued at $100,000, land valued...
a. Received contributions from five investors of $60,000 in cash ($12,000 each), a barn valued at $100,000, land valued at $90,000, and supplies valued at $12,000. Each investor received 3,000 shares of stock with a par value of $0.01 per share. b. Built a small barn for $62,000. The company paid half the amount in cash on April 1, 2017, and signed a three-year note payable for the balance. C. Provided $35,260 in animal care services for customers, all on...
Determine which accounts increase and/or decrease for each of
the transactions.
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased APRIL borrowed $8,000 from the bank on a note. a. b. APRIL purchased a desk and two chairs for $1,500 cash. C. APRIL purchased supplies on account for $700. d....
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased a. APRIL borrowed $8,000 from the bank on a note. b. APRIL purchased a desk and two chairs for $1,500 cash. c. APRIL purchased supplies on account for $700. d. APRIL provided services to others for $7,200 cash. e. APRIL provided...
1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased a. b. é osobis APRIL borrowed $6,400 from the bank on a note. APRIL purchased a desk and two chairs for $1,600 cash. APRIL purchased supplies on account for $700. APRIL provided services to others for $8,300 cash. APRIL provided services...
I just need to fill out the chart for IB-7 but IB-6 is the
information provided to solve IB-7
We were unable to transcribe this imageWe were unable to transcribe this image1B-6. (Similar to problem 1B-2) Show the effect on the accounting equation of the following events for the APRIL Company. Example: Investors purchased common stock in APRIL for $1,000 cash. Answer: Assets (cash) increased Owners' equity (common stock) increased APRIL borrowed $8,000 from the bank on a note. a....
a. Received contributions from five investors of $60,000 in cash ($12,000 each), a barn valued at $100,000, land valued at $90,000, and supplies valued at $12,000. Each investor received 3,000 shares of stock with a par value of $0.01 per share. b. Built a small barn for $62,000. The company paid half the amount in cash on April 1, 2017, and signed a three-year note payable for the balance. C. Provided $35,260 in animal care services for customers, all on...
Most questions answered within 3 hours.
-
Consider the schema below that models a bank’s branches,
customers and their accounts and loans. Provide...
asked 1 minute ago -
What kinds of policies should be considered when individuals
decisions may likely impact public expense? For...
asked 9 minutes ago -
The financial statements of Apple Inc. show the following
numbers for fiscal year 2017 ($000,000):
Revenue...
asked 15 minutes ago -
Suppose that you are given the following results. Find the
correlation coefficient of the data.
sx...
asked 24 minutes ago -
The width of a tool used for semiconductor manufacturing
is assumed to be normally distributed with...
asked 26 minutes ago -
A
runaway train car that has a mass of 1,400 kg travels at a speed of...
asked 30 minutes ago -
The expected abnormal earnings of a firm that has earnings of
$40,000 with a required equity...
asked 28 minutes ago -
A spherical surface completely surrounds a collection of
charges. Find the electric flux through the surface...
asked 44 minutes ago -
Two capacitors with capacitances of 12 and 18.1 µF,
respectively, are connected in parallel. The system...
asked 30 minutes ago -
Let's say you are a small business owner that provides
business-to-business software-as-a-service to non-profit
organizations. Your...
asked 35 minutes ago -
A circuit is constructed with five resistors and a battery as
shown. The battery voltage is...
asked 43 minutes ago -
A. What is the U.S.
economic system and what do you think are the advantages and...
asked 43 minutes ago