Understanding Financial Accounting 3rd Canadian Edition by Christopher D. Burnley solution manual

AP1-11A
A  ($862,000 - $194,000) = $668,000
D  ($300,000 - $100,000) = $200,000
B  ($686,000 + $200,000 + $428,000) = $1,314,000
C  ($3,426,000 - $815,000 - $300,000) = $2,311,000                        
 
LO 5  BT: AP  Difficulty: E Time: 15 min.  AACSB: None  CPA: cpa-t001  CM: Reporting
 
AP1-12A  
a.                                     Easy Peasy Ltd. 
           Statement of Income 
For the month of January 31, 2xxx 
 
Service revenue                                                                  $ 237,570 
Wages expense                                                  $ 35,791 
Advertising expense                                       10,000 
Operating expenses                                        6,450 
Supplies expense                                           16,465 
Utilities expense                                               1,465 
Total expenses                                                                                                                                                       70,171 
Net income                                                                                   $167,399 
 
b.  Other costs Friedrich might have incurred in January that were   
     not listed above include: 
 
1.  Depreciation expense of vehicles 
2.  Income tax expenses 
3.  Interest expense on any outstanding loans 
4. Insurance expense 
5. Other employee benefit costs such as employer portion of CPP and EI 
 
LO 5  BT: AP  Difficulty: E Time: 20 min.  AACSB: None  CPA: cpa-t001  CM: Reporting
 
 

AP1-13A
      a.                      Call of the Wild Ltd.