retained earnings that have occurred over a the balance sheet and the statement of cash specific period of time. The balance sheet flows. presents a listing of the assets, liabilities, 14. No. The business entity concept limits the and stockholders’ equity of a business as of recording of economic data to transactions a specific date. The statement of cash flows directly affecting the activities of the presents a summary of the cash receipts business. The payment of the interest of and cash payments of a business entity for a $5,000 is a personal transaction of specific period of time. Jessop and should not be recorded by 12. Net income, $2,929 million ($69,865 million Valley Delivery Service. $66,936 million) – 15. The land should be recorded at its cost of Net income or net loss will appear on both $110,000 to Wok Repair Service. This is 13. the income statement and the retained consistent with the cost concept. earnings statement. TheRetained Earnings 16. No. The of $975,000 and the increase in balance at the end of the period will appear the assessed value should not be on both the retained earnings statement and recognized in the accounting records. This is the balance sheet. Finally, the Cash balance consistent with the cost concept. at the end of the period will appear on both E1–1 1. service 6. merchandise 11. manufacturing 2. merchandise 7. manufacturing 12. service 3. manufacturing 8. manufacturing 13. service 4. manufacturing 9. service 14. manufacturing 5. service 10. manufacturing 15. merchandise E1–2 1. a—low-cost 5. a—low-cost 9. b—premium-price 2. a—low-cost 6. b—premium-price 10. a—low-cost 3. b—premium-price 7. a—low-cost 11. b—premium-price 4. a—low-cost 8. b—premium-price 12. E1–3 Best Buy stockholders’ equity: $16,005– $12,260 = $3,745 Gamestopstockholders’ equity: $4,847– $1,805 = $3,042 E1–4 Apple: $176,064– $57,854 = $118,210 Dell: $44,533– $35,616 = $8,917
retained earnings that have occurred over a specific period of time. The balance sheet presents a listing of the assets, liabilities, and stockholders’ equity of a business as of a specific date. The statement of cash flows presents a summary of the cash receipts and cash payments of a business entity for a specific period of time. 12. Net income, $2,929 million ($69,865 million – $66,936 million) 13. Net income or net loss will appear on both the income statement and the retained earnings statement. TheRetained Earnings balance at the end of the period will appear on both the retained earnings statement and the balance sheet. Finally, the Cash balance at the end of the period will appear on both the balance sheet and the statement of cash flows. 14. No. The business entity concept limits the recording of economic data to transactions directly affecting the activities of the business. The payment of the interest of $5,000 is a personal transaction of Jessop and should not be recorded by Valley Delivery Service. 15. The land should be recorded at its cost of $110,000 to Wok Repair Service. This is consistent with the cost concept. 16. No. The of $975,000 and the increase in the assessed value should not be recognized in the accounting records. This is consistent with the cost concept. E1–1 1. service 2. merchandise 3. manufacturing 4. manufacturing 5. service 6. merchandise 7. manufacturing 8. manufacturing 9. service 10. manufacturing 11. manufacturing 12. service 13. service 14. manufacturing 15. merchandise E1–2 1. a—low-cost 2. a—low-cost 3. b—premium-price 4. a—low-cost 5. a—low-cost 6. b—premium-price 7. a—low-cost 8. b—premium-price 9. b—premium-price 10. a—low-cost 11. b—premium-price 12. E1–3 Best Buy stockholders’ equity: $16,005– $12,260 = $3,745 Gamestopstockholders’ equity: $4,847– $1,805 = $3,042 E1–4 Apple: $176,064– $57,854 = $118,210 Dell: $44,533– $35,616 = $8,917
Solution-Manual-for-Survey-of-Accounting-7th-Edition-by-Warren.docx