August 31 Assets Liabilities Cash $ 25,360 Accounts payable $ 10,500 Accounts receivable 22,360 Equity Office supplies 5,250 Common stock 102,000 Office equipment 20,000 Retained earnings* 4,470 Land 44,000 Total equity 106,470 Total assets $116,970 Total liabilities & equity $116,970 * Amount from Exercise 2-17. Exercise 2-19 (15 minutes) CBS ABC CNN NBC Answers $(28,000) $42,000 $73,000 $(45,000) Computations: Equity, Dec. 31, Year 1 $ 0 $ 0 $ 0 $ 0 Owner's investments 110,000 42,000 87,000 210,000 Dividends (28,000) (47,000) (10,000) (55,000) Net income (loss) 22,000 90,000 (4,000) (45,000) Equity, Dec. 31, Year 2 $104,000 $85,000 $73,000 $110,000 Exercise 2-20 (20 minutes) (1) (2) (3) (4) Difference between Column Identify Amount that account(s) Debit and with the account(s) is overstated or Description Credit Larger incorrectly understated Columns Total stated a. $3,600 debit to Rent Rent Expense is Expense is posted as $2,260 Credit Rent Expense understated by $2,260 a $1,340 debit.
August 31 Assets Liabilities Cash $ 25,360 Accounts payable $ 10,500 Accounts receivable 22,360 Equity Office supplies 5,250 Common stock 102,000 Office equipment 20,000 Retained earnings* 4,470 Land 44,000 Total equity 106,470 Total assets $116,970 Total liabilities & equity $116,970 * Amount from Exercise 2-17. Exercise 2-19 (15 minutes) CBS ABC CNN NBC Answers $(28,000) $42,000 $73,000 $(45,000) Computations: Equity, Dec. 31, Year 1 $ 0 $ 0 $ 0 $ 0 Owner's investments 110,000 42,000 87,000 210,000 Dividends (28,000) (47,000) (10,000) (55,000) Net income (loss) 22,000 90,000 (4,000) (45,000) Equity, Dec. 31, Year 2 $104,000 $85,000 $73,000 $110,000 Exercise 2-20 (20 minutes) Description (1) Difference between Debit and Credit Columns (2) Column with the Larger Total (3) Identify account(s) incorrectly stated (4) Amount that account(s) is overstated or understated a. $3,600 debit to Rent Expense is posted as a $1,340 debit. $2,260 Credit Rent Expense Rent Expense is understated by $2,260
Wild_FA9e_SM_Ch02%20Exercises%20Only.docx