Solution Manual For Fundamental Accounting Principles, 25th Edition, John Wild

Solution Manual For
Fundamental Accounting Principles, 25th Edition,
John Wild
Chapter 1-26

Chapter 1
Accounting in Business
QUICK STUDIES
Quick Study 1-1 (10 minutes)

1. f Artificial Intelligence
2. c Recording
3. h Recordkeeping (bookkeeping)


Quick Study 1-2 (10 minutes)
a. External user g. External user
b. External user h. External user
c. External user i. Internal user
d. External user j. External user
e. Internal user k. External user
f. External user l. External user


Quick Study 1-3 (10 minutes)
1. Opportunity 4. Opportunity
2. Pressure 5. Pressure
3. Rationalization 6. Rationalization


Quick Study 1-4 (5 minutes)
1. Principle 3. Assumption
2. Assumption 4. Principle
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,Quick Study 1-5 (10 minutes)
Attribute Present Proprietorship Partnership Corporation LLC
1. Business taxed no no yes no
2. Limited liability no no yes yes
3. Legal entity no no yes yes



Quick Study 1-6 (10 minutes)
1. Revenue recognition principle
2. Measurement (cost) principle
3. Business entity assumption




Quick Study 1-7 (5 minutes)
Assets = Liabilities + Equity
$700,000 (a) $280,000 $420,000
$500,000 (b) $250,000 (b) $250,000



Quick Study 1-8 (10 minutes)
1.
Assets = Liabilities + Equity
$75,000 (a) $35,000 $40,000
(b) $95,000 $25,000 $70,000
$85,000 $20,000 (c) $65,000

2.
+ Owner, - Owner,
Assets = Liabilities + Revenues - Expenses
Capital Withdrawals
$40,000 $16,000 $20,000 $ 0 (a) $12,000 $ 8,000
$80,000 $32,000 $44,000 (b) $2,000 $24,000 $18,000




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,Quick Study 1-9 (5 minutes)
a. Increase
b. Decrease
c. Increase
d. Decrease


Quick Study 1-10 (15 minutes)

Assets = Liabilities + Equity
Accounts Accounts Owner, Owner,
Cash + = + - + Revenues - Expenses
Recble. Payable Capital Withdrawals

(a) $5,500 = $5,500
Consulting


(b) + $4,000 = + 4,000
Commission


Bal. 5,500 + 4,000 = + 9,500

(c) -1,400 = - $1,400
Wages


Bal. 4,100 + 4,000 = + 9,500 - 1,400

(d) +1,000 + - 1,000 = -

Bal. 5,100 + 3,000 = + 9,500 - 1,400

(e) -700 + = - 700
Cleaning


Bal. $4,400 + $3,000 = + $9,500 - $2,100




1
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, Quick Study 1-11 (15 minutes)

Assets = Liabilities + Equity
Owner,
Accts. Owner,
Cash + Supplies + Equip. + Land = + - With- + Rev. - Exp.
Pay. Capital
drawals

(a) $15,000 = $15,000

(b) -500 + $500 =

Bal. 14,500 + 500 = + 15,000

(c) + $10,000 = 10,000

Bal. 14,500 + 500 + 10,000 = + 25,000

(d) + 200 = +$200

Bal. 14,500 + 700 + 10,000 = 200 + 25,000

(e) -9,000 + $9,000 =

Bal. $5,500 + $700 + $10,000 + $9,000 = $200 + $25,000




Quick Study 1-12 (10 minutes)

a. Balance sheet e. Balance sheet
b. Statement of cash flows f. Statement of cash flows
c. Balance sheet g. Income statement
d. Income statement h. Balance sheet




2
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All rights reserved. No reproduction or distribution without the prior written consent of McGraw Hill.