专英思考练习题答案.doc

一、 Solution: Alternate Demonstration Problem Chapter Two 1. Item Assets = Liabilities + Equity a. Cash investment + 2,000 + 2,000 b. Revenue received + 11,400 + 11,400 c. Truck and equipment rental - 1,800 - 1,800 d. Truck expenses - 880 - 880 e. Miscellaneous supplies used - 90 - 90 f. Helpers - 4,700 - 4,700 g. Payroll taxes - 500 - 500 h. Insurance - 175 - 175 i. Telephone - 100 - 100 j. Withdrawal - 2,000 - 2,000 k. Revenue earned-not collected + 600 + 600 l. Oil and gas bill not yet paid + 100 - 100 3,755 100 3,655 2. BILL SMITH’S LAWN SERVICE CO. Income Statement For the period from June 1 through August 31 20XX Total revenue (11,400 + 600) $12,000 Expenses: Truck expenses (880 + 100) $ 980 Truck and equipment rental 1,800 Supplies 90 Helpers 4,700 Payroll taxes 500 Insurance 175 Telephone 100 Total expenses 8,345 Net income $ 3,655  3. BILL SMITH’S LAWN SERVICE CO. Balance Sheet August 31, 20XX Assets Liabilities and Owner’s Equity Cash $3,155 Accounts payable $ 100 Accts receivable 600 Bill Smith, capital 3,655 Total assets $3,755 Total liabilities and  owner’s equity $3,755 The cash balance can be determined as follows: Cash inflows (a) Savings $ 2,000 (b) Fees received 11,400 Total inflows $13,400 Cash outflows (c) Truck and equipment rental $ 1,800 (d) Truck expenses 880 (e) Buy supplies 90 (f) Pay helpers 4,700 (g) Pay taxes 500 (h) Buy insurance 175 (i) Pay phone bill 100 (j) Withdrawal 2,000 Total outflows 10,245 Ending cash balance $ 3,155 4. First, note that the cash investment ($2,000) and cash withdrawal ($2,000) affect the cash balance but do not affect the amount of net income earned during the period. Also, revenues in the amount of $600 are reflect