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SOLUTIONS TO EXERCISES - CHAPTER 5 - SET B EXERCISE 5-1B a....
SOLUTIONS TO EXERCISES - CHAPTER 5 - SET B
EXERCISE 5-1B
a.
Michelle's Accounting Service Horizontal Statements Model | |||||||||||||||||||
| Balance Sheet | Acct. Titles | ||||||||||||||||||
| Event | Assets | = | Equity | for R/E | |||||||||||||||
| Cash | + | NRV Acct. Rec. |
| = | Ret. Ear. | ||||||||||||||
| Year 1 | |||||||||||||||||||
| 1. | NA |
| 96,000 |
|
| 96,000 | Svc. Rev. | ||||||||||||
| 2. |
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| 3. |
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| 4. |
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| Bal. | 48,000 | + | 14,400 |
| = | 62,400 | |||||||||||||
EXERCISE 5-1B (Sol. cont.)
b.
Michelle's Accounting Service Income Statement For the Year Ended December 31, Year 1 | ||||
| Service Revenue | ||||
| Operating Expenses: | ||||
| Net Income | ||||
EXERCISE 5-4B
a.
| Balance Sheet | Acct. Titles for | ||||||||||||||||||
| Event | Assets | = | Equity | Retained Earnings | |||||||||||||||
| Cash | + | NRV Acct. Rec. |
| = | Ret. Ear. | ||||||||||||||
| Year 1 | |||||||||||||||||||
| 1. | NA |
| 45,000 |
|
| 45,000 | Service Rev. | ||||||||||||
| 2. |
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| 3. |
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| Bal. |
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EXERCISE 5-4B a. (Sol. cont. on next page)
EXERCISE 5-4B a. (Sol. Cont.)
| Balance Sheet | Acct. Titles for | ||||||||||||||||||
| Event | Assets | = | Equity | Retained Earnings | |||||||||||||||
| Cash | + | NRV Acct. Rec. |
| = | Ret. Ear. | ||||||||||||||
| Year 2 | |||||||||||||||||||
| Bal. | 32,000 |
| 12,550 |
|
| 44,550 | |||||||||||||
| 1. |
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| 2. |
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| 3. |
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| 4. |
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| Bal. | 98,000 | + |
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| |||||||||||||||
- (1) Net Income for Year 1:
- Net Cash Flow from Operating Activities:
- Balance of Accounts Receivable, 12/31/Year 1:
- Net Realizable Value of Accounts Receivable:
- (1) Net Income for Year 2:)
- Net Cash Flow from Operating Activities:
- Balance of Accounts Receivable, 12/31/Year 2:
- Net Realizable Value of Accounts Receivable, 12/31/Year 2:
EXERCISE 5-10B SOLUTION
a.
Event |
Assets |
= |
Liab. |
+ |
Equity | Acct. Title/Re | |||||||||||||
| Cash | + | NRV Accts. Rec. | = | + | Ret. Earn. | ||||||||||||||
| 1. |
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| 2. |
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| 3. |
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| 4. |
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| Bal. |
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EXERCISE 5-10B a.(Sol. cont. on next page)
EXERCISE 5-10B a. SOLUTION
| Number of days Past Due | Amount | Percent Likely to be Uncollectible | Allowance Balance |
| Current | $7,500 | .01 | |
| 0-30 | 2,000 | .05 | |
| 31-60 | 1,500 | .10 | |
| 61-90 | 1,000 | .30 | |
| Over 90 days | 2,000 | .50 | |
| Total | |||
b.
Tyler Service Co. Income Statement For the Year Ended December 31, Year 1 | ||||
| Service Revenue | $86,000 | |||
| Net Income | ||||
c. Net Realizable Value:
$
Less, $
Net Realizable Value $
EXERCISE 5-1B b. (Sol. cont. on next page)
EXERCISE 5-1B b. (Sol. cont.)
Michelle's Accounting Service Balance Sheet As of December 31, Year 1 | |||||||
| Assets | |||||||
| Liabilities | |||||||
| Stockholders' Equity | |||||||
| Total Liabilities and Stockholders' Equity | |||||||
Michelle's Accounting Service Statement of Cash Flows For the Year Ended December 31, Year 1 | |||||||
| Cash Flows From Operating Activities: | |||||||
| Cash Flows From Investing Activities | |||||||
| Cash Flows From Financing Activities | |||||||
| Net Change in Cash | |||||||
| Plus: Beginning Cash Balance | |||||||
| Ending Cash Balance | |||||||
XERCISE 5-11B SOLUTION
| Balance Sheet | Income Statement | Statement of | ||||||||||||||||
| Date | Assets | = | Equity | Rev. | - | Exp. | = | Net Inc. | Cash Flows | |||||||||
| Cash | + | Note Rec. | + | Int. Rec. | = | Ret. Ear. | ||||||||||||
| 1. 9/1/Y3 |
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| 2. 12/31/Y31 |
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| 3. 9/1/Y42 |
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| 9/1/Y4 Bal | 31,800 |
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Answer & Explanation
Solved by verified expertAnswered by AgentScorpionPerson2059 on coursehero.com
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Step-by-step explanation
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