Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley solution manual
Total Assets 1,800,000 800,0004 360,000 1,080,0005
Current Liabilities 750,000 170,000 50,000 410,000
Non-current Liab. 500,000 205,0006 120,000 270,0007
Shareholders’ Equity 550,0008 425,000 190,0009 400,000
Total Liabilities and
Shareholders’ Equity 1,800,00010 800,000 360,00011 1,080,00012
1 $800,0004 - $380,000 = $420,000
2 $1,800,000 - $650,000 = $1,150,000
3 $360,000 - $150,000 = $210,000
4 $800,000 = Total Liabilities and Shareholders’ Equity
5 $320,000 + $760,000 = $1,080,000
6 $800,000 - $425,000 -$170,000 = $205,000
7 $1,080,0005 - $400,000 -$410,000 = $270,000
8 $1,800,00010 (total assets) - $750,000 - $500,000 = $550,000
9 $360,00011 (total assets) - $50,000 - $120,000 = $190,000
10 $1,800,000 = Total Assets
11 $360,000 = Total Assets
12 $1,080,0005 = Total Assets
LO 5 BT: AP Difficulty: M Time: 20 min. AACSB: : Analytic CPA: cpa-t001 CM: Reporting
AP1-10B
A B C D
Retained Earnings
Dec. 31, 2023 $70,0001 $350,000 $2,400,000 $540,000
Net Earnings 30,000 400,000 500,0002 190,000
Dividends declared
and paid 5,000 150,0003 200,000 340,000
Retained Earnings
Dec. 31, 2024 95,000 600,000 2,700,000 390,0004
1 $95,000 - $30,000 + $5,000 = $70,000
2 $2,700,000 - $2,400,000 + $200,000 = $500,000
3 $400,000 - $350,000 - $600,000 = $150,000
4 $540,000 + $190,000 - $340,000 = $390,000
LO 5 BT: AP Difficulty: M Time: 15 min. AACSB: Analytic CPA: cpa-t001 CM: Reporting
AP1-11B
A ($2,687,000 + $792,000) = $3,479,000
D ($450,000 + $100,000) = $550,000
B ($2,564,000 + $1,775,000 + $550,000) = $4,889,000
C ($4,252,000 - $450,000 - $1,120,000) = $2,682,000
LO 5 BT: AP Difficulty: E Time: 15 min. AACSB: None CPA: cpa-t001 CM: Reporting
AP1-12B
a.
Scents Unlimited Ltd.
Statement of Income
For the month of May, 2xxx
Sales Revenue $24,730