SOLUTION MANUAL
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ACCOUNTING 9
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.
QUICK CHECK
1. c 7. c
2. c 8. a
3. c 9. c
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4. a 10. c
5. b 11. a
6. a 12. b
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STARTERS
S1-1
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a. FA e. MA
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b. FA f. FA
c. FA g. MA
d. MA h. FA
S1-2
Requirement 1
Kenmore Handyman Services has equity of $7,720.
Assets = Liabilities + Equity
$16,400 = $8,680 + ?
$16,400 = $8,680 + $7,720
Requirement 2
Kenmore Handyman Services has liabilities of $14,760.
Assets = Liabilities + Equity
$16,400 + $3,500 = ? + $7,720 – $2,580
$19,900 = $14,760 + $5,140
9781488617362/Miller-Nobles/Accounting, 9e
,Accounting 9e Solutions Manual, Chapter 1 2
S1-3
Requirement 1
Assets = Liabilities + Equity
+ Josh, – Josh, + Revenues – Expenses
Capital Withdrawal
$42,600 = $17,220 + $26,240 – $8,500 + $12,080 – ?
$42,600 = $17,220 + $26,240 – $8,500 + $12,080 – $4,440
Requirement 2
Josh’s Overhead Doors reported net profit of $7,640.
Profit = Revenues ($12,080) – Expenses ($4,440)
S1-4
a. L f. Q
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b. A g. A
c. Q h. Q
d. A i. A
e. Q j. E
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S1-5
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a. Increase asset (Cash); Increase equity (Service revenue)
b. Decrease asset (Cash); Decrease equity (Salaries expense)
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c. Increase asset (Cash); Increase equity (Maxdale, 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 (Maxdale, withdrawal)
S1-6
a. Increase asset (Cash); Increase equity (Gibson, 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 (Gibson, withdrawal)
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)
9781488617362/Miller-Nobles/Accounting, 9e
, Accounting 9e Solutions Manual, Chapter 1 3
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
DECORATING ARRANGEMENTS
Income statement
for the year ended 30 June 2021
$ $
Revenue:
Service revenue 80,000
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Expenses:
Salaries expense 37,000
Rent expense 11,000
Insurance expense 2,000
Electricity expense 500
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Total expenses 50,500
Net profit $29,500
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S1-9
Note that there is an error in the question. The first column, line 5, should read
Richards, capital, 1 July 2020 13,300
This has been corrected in the answer below.
DECORATING ARRANGEMENTS
Statement of changes in owners’ equity
for the year ended 30 June 2021
$
Richards, capital, 1 July 2020 13,300
Owner contribution 0
Profit for the year 29,500
42,800
Owner withdrawal (4,500)
Richards, capital, 30 June 2021 38,300
9781488617362/Miller-Nobles/Accounting, 9e
JN
U
R
SE
TH
ACCOUNTING 9
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.
QUICK CHECK
1. c 7. c
2. c 8. a
3. c 9. c
JN
4. a 10. c
5. b 11. a
6. a 12. b
U
STARTERS
S1-1
R
a. FA e. MA
SE
b. FA f. FA
c. FA g. MA
d. MA h. FA
S1-2
Requirement 1
Kenmore Handyman Services has equity of $7,720.
Assets = Liabilities + Equity
$16,400 = $8,680 + ?
$16,400 = $8,680 + $7,720
Requirement 2
Kenmore Handyman Services has liabilities of $14,760.
Assets = Liabilities + Equity
$16,400 + $3,500 = ? + $7,720 – $2,580
$19,900 = $14,760 + $5,140
9781488617362/Miller-Nobles/Accounting, 9e
,Accounting 9e Solutions Manual, Chapter 1 2
S1-3
Requirement 1
Assets = Liabilities + Equity
+ Josh, – Josh, + Revenues – Expenses
Capital Withdrawal
$42,600 = $17,220 + $26,240 – $8,500 + $12,080 – ?
$42,600 = $17,220 + $26,240 – $8,500 + $12,080 – $4,440
Requirement 2
Josh’s Overhead Doors reported net profit of $7,640.
Profit = Revenues ($12,080) – Expenses ($4,440)
S1-4
a. L f. Q
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b. A g. A
c. Q h. Q
d. A i. A
e. Q j. E
U
S1-5
R
a. Increase asset (Cash); Increase equity (Service revenue)
b. Decrease asset (Cash); Decrease equity (Salaries expense)
SE
c. Increase asset (Cash); Increase equity (Maxdale, 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 (Maxdale, withdrawal)
S1-6
a. Increase asset (Cash); Increase equity (Gibson, 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 (Gibson, withdrawal)
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)
9781488617362/Miller-Nobles/Accounting, 9e
, Accounting 9e Solutions Manual, Chapter 1 3
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
DECORATING ARRANGEMENTS
Income statement
for the year ended 30 June 2021
$ $
Revenue:
Service revenue 80,000
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Expenses:
Salaries expense 37,000
Rent expense 11,000
Insurance expense 2,000
Electricity expense 500
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Total expenses 50,500
Net profit $29,500
R
SE
S1-9
Note that there is an error in the question. The first column, line 5, should read
Richards, capital, 1 July 2020 13,300
This has been corrected in the answer below.
DECORATING ARRANGEMENTS
Statement of changes in owners’ equity
for the year ended 30 June 2021
$
Richards, capital, 1 July 2020 13,300
Owner contribution 0
Profit for the year 29,500
42,800
Owner withdrawal (4,500)
Richards, capital, 30 June 2021 38,300
9781488617362/Miller-Nobles/Accounting, 9e
