Goal: Ch 1, Cash-basis vs. accrual-basis transaction analysis (pp. 15-19, 100-101). 1. Consider how shareholder contributions...
Homework Answers
1.
| Cash Basis | ||||
| Assets/Resource | = | Claims Against Resources | ||
| Cash Basis | = | Contributed Capital | + | Earned Capital |
| $100,000 | = | $100,000 | + | - |
| Accrual Basis | ||||||||
| Assets/Resource | = | Claims Against Resources | ||||||
| Cash | Inventory | = | Accounts payable | + | Contributed Capital | + | Revenues | Expenses |
| $100,000 | - | = | - | $100,000 | - | - | ||
_______________________________________________________________________
2.
| Cash Basis | ||||||
| Assets/Resource | = | Claims Against Resources | ||||
| Cash | = | Contributed Capital | + | Earned Capital | ||
| Cash | = | Contributed Capital | + | Revenues | Expenses | |
| Owner contribution | $100,000 | = | $100,000 | + | - | - |
| Inventory Purchase | - | = | - | + | - | - |
| Sale of Inventory | $12,000 | = | - | + | $12,000 | - |
| Total | $112,000 | $100,000 | $12,000 | - | ||
| Accrual Basis | ||||||||
| Assets/Resource | = | Claims Against Resources | ||||||
| Cash | Inventory | = | Accounts payable | Contributed Capital | + | Revenues | Expenses | |
| Owner contribution | $100,000 | = | $100,000 | + | - | - | ||
| Inventory Purchase | - | $10,000 | = | $10,000 | - | + | - | - |
| Sale of Inventory | $12,000 | ($8,000) | = | - | + | $12,000 | ($8,000) | |
| Total | $112,000 | $2,000 | $10,000 | $100,000 | $12,000 | ($8,000) | ||
Add Answer to:
Goal: Ch 1, Cash-basis vs. accrual-basis transaction analysis
(pp. 15-19, 100-101).
1. Consider how shareholder contributions...
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1. Consider how shareholder contributions of $100,000 (to form the corporation) affect the following cash- and...
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A: True or False ??
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QUESTION: The sale of inventory increases the inventory balance using accrual-basis accounting. o True o False...
QUESTION:
The sale of inventory increases the inventory balance using
accrual-basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash....
QUESTION: The cash purchase of a building reduces total assets when using accrual basis accounting. o...
QUESTION:
The cash purchase of a building reduces total assets when
using accrual basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent...
QUESTION: Credit purchases of inventory decrease total liabilities using accrual-basis accounting. o True o False 1....
QUESTION:
Credit purchases of inventory decrease total liabilities
using accrual-basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash. d....
Goal: Ch 1. Cash-basis vs. accrual basis financial statements, excluding cash flows (pp. 20-23) 1. Consider how shareholder contributions of $100,000 (to form the corporation) affect the following cash and accrual-basis accounting equations, respectively Assets/Resources Cash Cash-Basis Claims against Resources Contributed Capital + Assets/Resources Cash Inventory Cash Inventory Cash Inventory Accrual-Basis Claims against Resources Liabilities + Shareholders' Equity Liabilities + Contributed Capital Eamed Capital Accounts Payable + Contributed Capital + Revenues Expenses 2. In addition to the previous transaction, assume...
1. Consider how shareholder contributions of $100,000 (to form the corporation) affect the following cash- and accrual basis accounting equations, respectively Assets Resources Cash - Cash-Basis Claims against Resources Contributed Capital + Farned Capital 1 Assets Resources Cash Inventory Cash Inventory Cash Inventory Accrual-Basis Claims against Resources Liabilities + Shareholders' Equity Liabilities + Contributed Capital + Earned Capital Accounts Payable + Contributed Capital Revenues Expenses 2. In addition to the previous transaction, assume that the corporation purchases inventory for $10.000...
Q: Credit purchases of inventory decrease total liabilities
using accrual-basis accounting.
A: True or False?
Goal: Transaction analysis using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the...
Q: The cash purchase of a building reduces total assets when
using accrual basis accounting.
A: True or False ??
Goal: Transaction analysis using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January...
Goal: determine the effect of various transactions on the cash-basis accounting equation (pp. 55-59) 1. Use the template below to indicate how the following transactions affect the cash-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires tive employees to manage and operate the business. c. On January 1, 2015, Kissimmee pays the monthly rent of $500 cash. d. On...
Q: The sale of inventory increases the inventory balance using
accrual-basis accounting.
A: True or False ??
Goal: Transaction analysis using ACCRUAL-basis accounting. 1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires five employees to manage and operate the business. c. On January 1, 2015, Kissimmee...
QUESTION:
The sale of inventory increases the inventory balance using
accrual-basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash....
QUESTION:
The cash purchase of a building reduces total assets when
using accrual basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent...
QUESTION:
Credit purchases of inventory decrease total liabilities
using accrual-basis accounting.
o True
o False
1. Use the template below to indicate how the following transactions affect the accrual-basis accounting equation: a. Kissimmee, Inc. (a retail store) begins business on January 1, 2015 with a $100,000 cash contribution from the owners. b. On January 1, 2015, Kissimmee hires ſive employees to manage and operate the business. c. On January 1, 2015, Kissimmee prepays the monthly rent of $500 cash. d....
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