© 2021 Pearson Education, Inc.Solutions 1. e 2. a 3. d 4. b 5. f 6. c 7. d 8. f 9. i 10. c 11. a 12. h 13. b 14. g 15. eChapter F:1
Try It! Solutions 16. $2,260
$2,260Owner’s
CapitalOwner’s
WithdrawalsRevenues Expenses
?
$59,038$14,420
$14,420$53,085
$53,085$28,675
$28,6752
2 2
2 21
1 1
1 12LIABILITIES
5EQUITY ASSETS
$71,288$71,2881 17. Accounts
Payable
23001
1
1 1
1
11
1$1,440
$1,44011,440
$2001200
$300$200
$200Lawlor,
Withdrawals2
21 2
2
2Service
RevenueGas
Expense
$60260
$60$1,440$1,440LIABILITIES EQUITY ASSETS
$1,700May 1
Bal.
3
Bal.
5
Bal.
17
Bal.
28
Bal.11,700
$1,700
$1,700
260
2300$1,640
$1,340$1,4401
$1,440Equipment 1
11
1
1
11
1Accounts
ReceivableCash
11,440
$1,440$1,440
$2001200
$200
$2005
$2,980 $2,980$1,700
$1,700
$1,700
$1,700Lawlor,
Capital
11,700
$1,7002 S-1
HORN2186_TryIt Solutions_Accounting_Fin_TLM.indd 1 05/05/20 12:39 PM S-2 Solutions
© 2021 Pearson Education, Inc.
Expenses:Revenues: Service Revenue $ 7,000
$ 6,000$ 800 Utilities Expense Salaries Expense
200
1,000 Total Expenses
Net IncomeDR PAINTING
Income Statement
Month Ended March 31, 2024 18. Net income for the monthOwner contribution Richardson, Capital, March 1, 2024 $ 0
$ 44,5006,00040,000
46,000
Owner withdrawal (1,500)
Richardson, Capital, March 31, 2024DR PAINTING
Statement of Owner’s Equity
Month Ended March 31, 2024
Office Supplies Owner’s EquityCash Accounts Payable
Accounts Receivable
Truck Richardson, Capital
Total Assets Total Liabilities and Owner’s EquityLiabilities Assets
$ 45,500 $ 45,50020,0001,400
1,800$ 22,300 $ 1,000
44,500DR PAINTING
Balance Sheet
March 31, 2024 19. Return on assets =Net income / Average total assets =+5,000 / [(+76,000 ++80,250) / 2] =6.4,
HORN2186_TryIt Solutions_Accounting_Fin_TLM.indd 2 05/05/20 12:39 PM Solutions S-3
© 2021 Pearson Education, Inc.
Martinez, CapitalCash
10,00010,000
Owner withdrawal.CashMartinez, Withdrawals 28
500500Performed services and received cash.Service RevenueCash 20
1,0001,000Paid advertising expense.CashAdvertising Expense 18
150150Purchased office supplies on account.Accounts PayableOffice Supplies 15
400400Owner contribution.Accounts and Explanation
Nov. 1Date Debit CreditChapter F: 2
Try It! Solutions 1. E 2. E 3. A 4. E 5. A 6. L 7. L 8. A 9. E 10. E 11. DR 12. DR 13. CR 14. CR 15. CR 16. CR 17. DR 18. CR 19. DR 20. CR 21. HORN2186_TryIt Solutions_Accounting_Fin_TLM.indd 3 05/05/20 12:39 PM S-4 Solutions
© 2021 Pearson Education, Inc.
Account Title
Accounts PayableCashDebit Credit
Equipment
Unearned Revenue
Cooper, Capital
Cooper, Withdrawals
Service Revenue
Rent Expense
Advertising Expense
Utilities Expense
TotalBalance
$ 27,0008,00012,200$ 2,300
4,500$ 7,000
$ 27,0001,200
80010,000
3,000
5,000COOPER FURNITURE REPAIR
Trial Balance
December 31, 2024 22. Total assets =+7,000++10,000=+17,000 Total liabilities =+2,300++4,500=+6,800 Debt ratio =Total liabilities / Total assets =+6,800 / +17,000 =0.40 =40, 23. 1. Service Revenue =cash received =+105,000
Expenses =cash paid =+85,000-+10,000++5,000=+80,000 2. Service Revenue =revenue earned =+130,000
Expenses =expense incurred =+85,000 3. b 4. a 5. c 6. a. deferral b. accrual c. deferral d. accrual e. deferralChapter F: 3
Try It! Solutions
HORN2186_TryIt Solutions_Accounting_Fin_TLM.indd 4 05/05/20 12:39 PM
