Problem 3.

18

Liabilities and shareholders

Assets $ equity $
Cash 90,000 Accounts payable 110,000
Accounts receivable 106,000 Long-term loan 240,000
Inventory 118,000 Share capital 200,000
Prepayments 45,000 Retained profits 84,000
Equipment 400,000
Accumulated
depreciation (125,000)
Total 634,000 Total 634,000

N
O Asset = Liabilities + Equity
1 accout receivables
-23000
cash
23000
revenue 44000
2 cash issue shares
unearned 76000
rev 80000 -80000
cogs -32000unearned
3 inventory revenue Expense (cogs)
-32000 76000 -32000
expense 33000
account
depreciati
receivables 4000
on
76000
adm 7000
depreciation
expense
4 depreciation expense
prep 9000
expense -4000 -4000
5 cash
wage 13000Loan
-60000 -60000
6 cash
p/l 11000 adm expense
-7000 -7000
7 prepayment Expense
Assets -9000 $ -9000
Liabilities and shareholders
8 wage accrualequity Expense $
Cash 43000 Accounts
-13000 payable -13000 74000
9 Accounts
cash receivable 159000 Long-term loan 180000
Inventory -28000 114000 Share capital 280000
Prepayments
inventory 36000 Retained profits 8900
28000 0
1 Equipment 400000
account
1 Accumulated
cash -129000
payable
depreciation-36000 -36000
1
0 Cash dividen
-6000 6000
Total 623000 Total 623000

Problem 3.23

N
o Asset = Liabilities + Equity
Account
1 Cash Payable SH Eq
45000 10000 35000
2 inventories SH Eq
500 8000
PPE
7500
3 cash SH eq
25000 25000
4 Prepayment
2000
Cash
-2000
5 Expense
-4500
SH Eq
4500
Account
6 PPE payable
63250 35250
Cash
-28000
account
7 Inventories payable
8630 7630
cash
-1000
account
8 cash payable
2500 2500
9 cash expense
-1800 -1800

Asset Liabilities
Cash 39700 Account 55380
 Payable
inventori
es 9130
PPE 70750 SH equity 72500
prepaym
ent 2000 expense -6300

total 121580 total 121580

Problem 5.10

N Liabiliti
o Asset = es + Equity
a Cash Bonus (exp)
-12000 -12000
b Prepayment expense
-1800 -1800
account unearned
c receivable rev
450 450
d cash expense
-900 -900
expense
account (additional for
e receivable doubtfull debt)
-1907.5 -1557.5
expense (write
off)
-350
f cash expense
-4500 -4500
unearned
g cash rev
600 600
h cash expense
-92 -92

account receivable 171500

write off -350

171150
allowance (5%) 8557.5
current allowance 7000

expense (change 5% -1557.5

of BD)
expense (write off) -350

total expense for bd -1907.5

Problem 5.11

1. $ 70 M + $ 52 M - $ 50.8 M = $ 71.2 M
2. $ 500 M - $ 297.1 M + $ 306.7 M = $ 509.6 M
3. $ 30 M + $ 34.4 M - $ 36.2 M = $ 28.2 M
4. $ 35 M + $ 14.351 M - $ 17.440 M = $ 32.091 M