Solutions Manual for Horngren's Accounting 10th Australian Edition – Tracie L. Miller

Solutions Manual - Horngren's Accounting, 10th Australian Edition by Tracie L. Miller et al


Miller-Nobles, Horngren’s Accounting, 10th
edition
Chapter 1: The role of accounting in decision making
Excel Exercise 1.1

Solution isn’t provided as company reports will change each year.



STARTERS
S1-1
a. FA e. MA
b. FA f. FA
c. FA g. MA
d. MA h. FA


S1-2
Requirement 1
Style Synergy Services has equity of $7,720.
Assets = Liabilities + Equity
$16,400 = $8,680 + ?
$16,400 = $8,680 + $7,720




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1

,Requirement 2
Style Synergy Services has liabilities of $14,760.
Assets = Liabilities + Equity
$16,400 + $3,500 = ? + $7,720 – $2,580
$19,900 = $14,760 + $5,140


S1-3
Requirement 1

Assets = Liabilities + Equity
+ Josh, – Josh, + Revenues – Expenses
capital withdrawals
$42,600 = $17,220 + $26,240 – $8,500 + $12,080 – ?
$42,600 = $17,220 + $26,240 – $8,500 + $12,080 – $4,440

Requirement 2
David’s Overhead Doors reported net profit of $7,640.
Net profit = Total revenue ($12,080) - Total expenses ($4,440)



S1-4
a. L f. Q
b. A g. A
c. Q h. Q
d. A i. A
e. Q j. Q


S1-5
a. Increase asset (Cash); Increase equity (Service revenue)
b. Decrease asset (Cash); Decrease equity (Salaries expense)
c. Increase asset (Cash); Increase equity (Maxwell, capital)
d. Increase asset (Accounts receivable); Increase equity (Service revenue)
e. Increase liability (Accounts payable); Decrease equity (Electricity expense)
f. Decrease asset (Cash); Decrease equity (Maxwell, withdrawals)




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,S1-6
a. Increase asset (Cash); Increase equity (Vibe Vault, capital)
b. Increase asset (Equipment); Increase liability (Accounts payable)
c. Increase asset (Office supplies); Decrease asset (Cash)
d. Increase asset (Cash); Increase equity (Service revenue)
e. Decrease asset (Cash); Decrease equity (Wages expense)
f. Decrease asset (Cash); Decrease equity (Vibe Vault, withdrawals)
g. Increase asset (Accounts receivable); Increase equity (Service revenue)
h. Decrease asset (Cash); Decrease equity (Rent expense)
i. Increase liability (Accounts payable); Decrease equity (Electricity expense)



S1-7
a. B f. I
b. B g. B
c. OE and B h. OE
d. B i. B
e. I j. I


S1-8


DECOR ARRANGEMENTS
Income statement
for the year ended 30 June 2026
$ $
Revenue:
Service revenue 80,000
Expenses:
Salaries expense 37,000
Rent expense 11,000
Insurance expense 2,000
Electricity expense 500
Total expenses 50,500
Net profit $29,500




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, S1-9


DECOR ARRANGEMENTS
Statement of changes in owners’ equity
for the year ended 30 June 2026
$
Richards, capital, 1 July 2025 13,300
Owner contribution 0
Profit for the year 29,500
42,800
Owner withdrawal (4,500)
Richards, capital, 30 June 2026 38,300




S1-10


DECOR ARRANGEMENTS
Balance sheet
as at 30 June 2026
$ $
Assets Liabilities
Cash 7,000 Accounts payable 4,300
Accounts receivable 7,500
Office supplies 1,500 Owners’ equity
Equipment 26,600 Richards, capital 38,300
Total assets 42,600 Total liabilities and owners’ equity 42,600




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