ACC1701
ACCOUNTING FOR DECISION MAKERS
SEMESTER 1 2021 / 2022
TUTORIAL 1 ANSWER SOLUTION
FS Overview & Accounting Mechanics
AA 2-6 Philips
Real Company Analysis
1.
(1) 1,425/27,016 = 5.3%
(2) 4,939 million
2.
(1) 2019: 19,482 million
2018: 18,121 million
2017: 17,780 million
(2) Yes
E 3-3 (LO2) Expanded Accounting Equation
Transaction Assets = Liabilities + Equity
1 + (Supplies) + (Accounts Payable) 0
2 + (Cash) 0 + (Revenue)
3 + (Cash) + (Notes Payable) 0
4 + (Land) + (Notes Payable) 0
– (Cash)
5 + (Cash) 0 + (Capital Stock)
6 – (Cash) 0 – (Salaries
Expense)
7 – (Cash) – (Accounts Payable) 0
8 + (Cash) 0 0
+ (Notes Receivable)
– (Buildings)
9 – (Cash) 0 – (Dividends)
10 – (Cash) 0 – (Utilities
Expense)
P 3-7 (LO3, LO4) Unifying Concepts: Journal Entries, T-Accounts, Trial Balance
1. 2022
May 3 Accounts Payable...................................... 3,000
Cash ...................................................... 3,000
6 Cash............................................................ 2,450
Accounts Receivable ........................... 2,450
7 Cash............................................................ 3,000
Accounts Receivable ................................ 2,000
Service Revenue .................................. 5,000
15 Notes Payable ............................................ 2,500
Cash ...................................................... 2,500
21 Cash............................................................ 1,000
Capital Stock ........................................ 1,000
23 Cash............................................................ 3,750
Service Revenue .................................. 3,750
25 Salaries Expense ....................................... 1,000
Cash ...................................................... 1,000
26 Rent Expense ............................................. 250
Cash ...................................................... 250
29 Office Equipment ....................................... 250
Cash ...................................................... 250
2.
Cash
Beg. bal. 8,050 5/3 3,000
5/6 2,450 5/15 2,500
5/7 3,000 5/25 1,000
5/21 1,000 5/26 250
5/23 3,750 5/29 250
End. bal. 11,250
Accounts Receivable Buildings
Beg. bal. 2,450 5/6 2,450 Beg. bal. 30,000
5/7 2,000
End. bal. 2,000 End. bal. 30,000
Office Equipment Notes Payable
Beg. bal. 2,000 5/15 2,500 Beg. bal. 12,500
5/29 250
End. bal. 2,250 End. bal. 10,000
Accounts Payable Capital Stock
5/3 3,000 Beg. bal. 6,000 Beg. bal. 15,000
5/21 1,000
End. bal. 3,000 End. bal. 16,000
Retained Earnings Service Revenue
Beg. bal. 9,000 5/7 5,000
5/23 3,750
End. bal. 8,750
Salaries Expense Rent Expense
5/25 1,000 5/26 250
3. Chris Company
Trial Balance
May 31, 2022
Debit Credit
Cash .............................................................................. $ 11,250
Accounts Receivable ................................................... 2,000
Buildings ....................................................................... 30,000
Office Equipment.......................................................... 2,250
Notes Payable ............................................................... $
10,000
Accounts Payable ........................................................ 3,000
Capital Stock................................................................. 16,000
Retained Earnings ........................................................ 9,000
Service Revenue ........................................................... 8,750
Salaries Expense .......................................................... 1,000
Rent Expense................................................................ 250
Totals ............................................................................. $46,750 $46,750
AY2122 Sem1: ACC1701 Tutorial Answer Solution Page 3 of 3