Solution Manual For Financial Accounting, 6th Edition By David Spiceland, Wayne Thomas, All Chapters|| Complete Guide A+

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EXERCISES




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Exercise 1-1 (LO 1-2)




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1. a.
2. c.




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3. a.
4. b.




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5. c.




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6. a.
7. b.

Exercise 1-2 (LO 1-2)
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Transaction Financial Account Activity
Statement
1. Falcon purchases common stock of Balance sheet Asset Investing
Wildcat.
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2. Falcon borrows from Wildcat by Balance sheet Liability Financing
signing a note.
3. Falcon provides services to Wildcat. Income statement Revenue Operating
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4. Falcon pays interest to Wildcat on Income statement Expense Operating
borrowing.
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Exercise 1-3 (LO 1-2)
Transaction Financial Account Activity
Statement
1. Wildcat issues common stock to Balance sheet Equity Financing
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Falcon.
2. Wildcat lends to Falcon by accepting Balance sheet Asset Investing
a note.
3. Wildcat receives services from Income statement Expense Operating
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Falcon.
4. Wildcat receives interest from Falcon Income statement Revenue Operating
on lending.
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Solutions Manual, Chapter 1 1-11

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Exercise 1-4 (LO 1-2)




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Requirement 1
Revenues − Expenses = Net Income




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$14,000 − $9,000 = $5,000

Requirement 2
Stockholders’




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Assets = Liabilities + equity
$50,000 = $27,000 + $X
$50,000 − $27,000 = $23,000



Exercise 1-5 (LO 1-2)
Requirement 1 IA A
Revenues − Expenses = Net Loss
$28,000 − $33,000 = ($5,000)
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Requirement 2
Stockholders’
Assets = Liabilities + equity
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$19,000 = $15,000 + $X
$19,000 − $15,000 = $4,000
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V E




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distribution permitted without the prior written consent of McGraw Hill Education
1-12 Financial Accounting, 6e

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Exercise 1-6 (LO 1-3)
Cowboy Law Firm
Income Statement




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For the period ended December 31
Service revenue $9,300
Expenses:




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Salaries 2,200
Utilities 1,200




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Total expenses 3,400




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Net income $5,900




Exercise 1-7 (LO 1-3)
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Buffalo Drilling
Statement of Stockholders’ Equity
For the year ended December 31
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Total
Common Retained Stockholders’
Stock Earnings Equity
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Beginning balance, Jan. 1 $11,000 $ 8,200 $19,200
Issuance of common stock 8,000 8,000
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Add: Net income 8,500 8,500
Less: Dividends (3,200) (3,200)
Ending balance, Dec. 31 $19,000 $13,500 $32,500
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permitted without the prior written consent of McGraw Hill Education.
Solutions Manual, Chapter 1 1-13

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Exercise 1-8 (LO 1-3)
Wolfpack Construction
Balance Sheet




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December 31
Assets Liabilities
Cash $ 6,000 Accounts payable $ 3,000




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Land 18,000 Notes payable 20,000
Equipment 26,000 Total liabilities 23,000




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Stockholders’ Equity
Common stock 11,000



Total assets $50,000
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Retained earnings
Total stockholders’ equity
Total liabilities and
stockholders’ equity
A 16,000 *
27,000

$50,000


* Assets = Liabilities + Stockholders’ equity
$50,000 = $23,000 + ($11,000 + Retained earnings)
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$50,000 − $23,000 − $11,000 = Retained earnings
$16,000 = Retained earnings
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V O
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distribution permitted without the prior written consent of McGraw Hill Education
1-14 Financial Accounting, 6e