Expenses 170,000 113,000 185,000 Instructions Determine the amounts of the missing items, identifying each proprietorship by letter. Solution Exercise 20 (10 min.) Proprietorship A ($85,000) Beginning Capital balance ($400,000 $250,000) $150,000 – Additional investments ($260,000 $150,000 $25,000) 85,000 – – Profit for year ($195,000 $170,000) 25,000 – 260,000 Less withdrawals 90,000 Ending Capital balance ($450,000 $280,000) $170,000 – Proprietorship B ($172,000) Beginning Capital balance ($150,000 $105,000) $ 45,000 – Additional investments 79,000 Profit for year 59,000 [Revenue = $172,000 ($113,000 + $59,000)] 183,000 Less withdrawals 83,000 Ending Capital balance ($195,000 $95,000) $100,000 – Proprietorship C ($87,000) Beginning Capital balance ($199,000 $168,000) $ 31,000 – Additional investments 80,000 Profit for year ($187,000 $185,000) 2,000 – 113,000 Less withdrawals ($113,000 $26,000) 87,000 – Ending Capital balance ($195,000 $169,000) $ 26,000 – Exercise 21 Indicate in the space provided by each item whether it would appear on the Income Statement (IS), Balance Sheet (BS), or Statement of Owner's Equity (OE): 1. Service Revenue 7. Accounts Receivable 2. Utilities Expense 8. K. Brown, Capital 3. Cash 9. Equipment 4. Accounts Payable 10. Advertising Expense 5. Office Supplies 11. K. Brown, Drawings 6. Wage Expense 12. Notes Payable (5 min.) Solution Exercise 21 1. IS 2. IS 3. BS 4. BS 5. BS
Expenses 170,000 113,000 185,000 Instructions Determine the amounts of the missing items, identifying each proprietorship by letter. Solution Exercise 20 (10 min.) Proprietorship A ($85,000) Beginning Capital balance ($400,000 – $250,000) $150,000 Additional investments ($260,000 – $150,000 – $25,000) 85,000 Profit for year ($195,000 – $170,000) 25,000 260,000 Less withdrawals 90,000 Ending Capital balance ($450,000 – $280,000) $170,000 Proprietorship B ($172,000) Beginning Capital balance ($150,000 – $105,000) $ 45,000 Additional investments 79,000 Profit for year 59,000 [Revenue = $172,000 ($113,000 + $59,000)] 183,000 Less withdrawals 83,000 Ending Capital balance ($195,000 – $95,000) $100,000 Proprietorship C ($87,000) Beginning Capital balance ($199,000 – $168,000) $ 31,000 Additional investments 80,000 Profit for year ($187,000 – $185,000) 2,000 113,000 Less withdrawals ($113,000 – $26,000) 87,000 Ending Capital balance ($195,000 – $169,000) $ 26,000 Exercise 21 Indicate in the space provided by each item whether it would appear on the Income Statement (IS), Balance Sheet (BS), or Statement of Owner's Equity (OE): 1. Service Revenue 7. Accounts Receivable 2. Utilities Expense 8. K. Brown, Capital 3. Cash 9. Equipment 4. Accounts Payable 10. Advertising Expense 5. Office Supplies 11. K. Brown, Drawings 6. Wage Expense 12. Notes Payable Solution Exercise 21 (5 min.) 1. IS 2. IS 3. BS 4. BS 5. BS
Test-Bank-for-Accounting-Principles-6th-Canadian-Edition-by-Weygandt.docx