8657 Prepare P1.2 on page 1-42, but for b., instead of a retained earnings statement, write a...
Question:
8657
Prepare P1.2 on page 1-42, but for b., instead of a retained earnings statement, write a Statement of Changes in Equity. Use Appendix 12A on page 12-28 as a guide. You may assume the Note Payable is due on 1 December 2021. In addition, before preparing the tabular analysis required by (a), write a residual analysis of each event, as discussed in class. For the balance sheet, divide assets and liabilities into current and non-current, with a sub-total for each. List liabilities before equity.
(a)
Residual Analysis
1. The asset Cash increased, increasing assets. Cash is an asset because____________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________The asset Accounts Receivable decreased because ______________________________________________________________________________________________________________________________________________________________________________________________________________There is no effect on liabilities. Net assets? __________________
__________________________________________________________________________________________________________________________________________________________________________________
2. The asset Cash decreased because____________________________, _________ assets. Effect on other assets?____________________________ The liability Accounts Payable decreased because_____________ __________________________________________________________________________________________________________________________________________________________________________________Net assets?________________________________________________________________________________
3. The asset Cash increased (see 1. above), as did the asset____________________________. This asset increased because_______________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________Liabilities?___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Net assets?________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________
4. The asset_____________ increased because__________________________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ___________The difference of $1,600___________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Net assets? _______________________________
5. The asset cash decreased because its purchasing power was realised. Resources purchased?___________ _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Liabilities?_________________________________________________________________________________Net assets?________________________________________________________________________________
6. The asset _______________________________________________________________________________ ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________Net assets?________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________
7. The asset cash increased--see 1.above_______________________________________________________
________________________________________________Liabilities?_________________________________
____________________________________________________________________________________________________________________________________________________________________________________________________Net assets?______________________________________________________________
8. Assets?_________________________________________________________________________________
__________________________________________________________________________________________________________________________________________________________________________________
Liabilities?_________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________
Net assets? _______________________________________________________________________________ _________________________________________________________________________________________
_________________________________________________________________________________________
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren