Exercise 1-15: Preparing a balance sheet L.O P1 On October 1, Keisha King organized Real Answers, a new consulting firm. On October 31, the company's records show the following items and amounts. Use the following information to prepare an October 31 balance sheet for Real Answers. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) Cash $ 8,200 Cash withdrawals by owner $ 2,000 Accounts receivable 18,000 Consulting fees earned 20,000 Office supplies 17,425 Rent expense 3,600 Land 46,000 Salaries expense 8,000 Office equipment 18,000 Telephone expense 760 Accounts payable 30,750 Miscellaneous expenses 580 Owner investments 71,815 REAL ANSWERS Balance Sheet October 31 Assets Liabilities Cash $ 8200 Accounts payable $ 30750 Accounts receivable 18000 Office supplies 17425 Equity Office Equipment 18000 King, Capital 76875 Land 46000 Total assets $ 107625 Total liabilities and equity $ 107625

Exercise 1-15: Preparing a balance sheet L.O P1

On October 1, Keisha King organized Real Answers, a new consulting firm. On October 31, the company's records show the following items and amounts. Use the following information to prepare an October 31 balance sheet for Real Answers. (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.)

Cash	$ 8,200		Cash withdrawals by owner	$ 2,000
Accounts receivable	18,000		Consulting fees earned	20,000
Office supplies	17,425		Rent expense	3,600
Land	46,000		Salaries expense	8,000
Office equipment	18,000		Telephone expense	760
Accounts payable	30,750		Miscellaneous expenses	580
Owner investments	71,815

REAL ANSWERS Balance Sheet October 31
Assets			Liabilities
Cash	$	8200	Accounts payable	$	30750
Accounts receivable		18000
Office supplies		17425	Equity
Office Equipment		18000	King, Capital		76875
Land		46000
Total assets	$	107625	Total liabilities and equity	$	107625

Exercise 2-13: Computing net income L.O. A1, P3 A proprietorship had the following assets and liabilities at the beginning and end of a recent year. Assets Liabilities Beginning of the year $ 96,500 $ 41,369 End of the year 146,000 59,130 ________________________________________ Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases. (Net Loss amount should be indicated by a minus sign. Omit the "$" sign in your response.) a. Owner made no investments in the business and no withdrawals were made during the year. Net Income (13%) $ 17761 (0%) b. Owner made no investments in the business but withdrew $1,250 cash per month for personal use. Net Income (13%) $ 2761 (0%) c. No withdrawals were made during the year but the owner invested an additional $45,000 cash. Net Loss (13%) $ -27239 (0%) d. Owner withdrew $1,250 cash per month for personal use and the owner invested an additional $25,000 cash. Net Income (13%) $ 19130 (0%)

Exercise 2-13: Computing net income L.O. A1, P3

A proprietorship had the following assets and liabilities at the beginning and end of a recent year.

	Assets			Liabilities
Beginning of the year	$	96,500		$	41,369
End of the year		146,000			59,130

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Determine the net income earned or net loss incurred by the business during the year for each of the following separate cases. (Net Loss amount should be indicated by a minus sign. Omit the "$" sign in your response.)

a.	Owner made no investments in the business and no withdrawals were made during the year.

Net Income (13%)

$

17761   (0%)

b.	Owner made no investments in the business but withdrew $1,250 cash per month for personal use.

Net Income (13%)

$

2761   (0%)

c.	No withdrawals were made during the year but the owner invested an additional $45,000 cash.

Net Loss (13%)

$

-27239   (0%)

d.	Owner withdrew $1,250 cash per month for personal use and the owner invested an additional $25,000 cash.

Net Income (13%)

$

19130   (0%)

Exercise 3-9: Computing and interpreting profit margin L.O. A2 Requirement 1: Use the following information to compute profit margin for each separate company a through e. (Round your answer to 1 decimal place. Omit the "%" sign, which is provided for you.) Net Income Net Sales Profit Margin a. $ 4,818 $ 40,490 11.9 (20%) % b. 78,919 360,361 21.9 (20%) % c. 82,854 230,793 35.9 (20%) % d. 57,900 1,315,925 4.4 (20%) % e. 66,768 392,753 16.9 (0%) % Requirement 2: Which of the five companies is the most profitable according to the profit margin ratio? Your Answer: Choice Selected Company A Company B Company C Company D Company E

Exercise 3-9: Computing and interpreting profit margin L.O. A2

Requirement 1: Use the following information to compute profit margin for each separate company a through e. (Round your answer to 1 decimal place. Omit the "%" sign, which is provided for you.)

		Net Income			Net Sales			Profit Margin
a.			$   4,818			$       40,490			11.9 (20%) %
b.			78,919			360,361			21.9 (20%) %
c.			82,854			230,793			35.9 (20%) %
d.			57,900			1,315,925			4.4 (20%) %
e.			66,768			392,753			16.9   (0%) %
	Requirement 2: Which of the five companies is the most profitable according to the profit margin ratio?

Your Answer: Choice Selected Company A Company B Company C   Company D Company E