【正文】 Suggested SolutionChapter 11. Effect on the accounting equation(1)(2)(3)(4)(5)(6)(a) Increase in one asset, decrease in another asset.√(b) Increase in an asset, increase in a liability.(c) Increase in an asset, increase in capital.√√(d) Decrease in an asset, decrease in a liability.√(e) Decrease in an asset, decrease in capital.√√2. TransactionsAssets+/Liabilities+/Owner’s equity+/1++2++34++5++678+/9103. Describe each transaction based on the summary above.Transactions1Purchased land for cash, $6,000.2Investment for cash, $3,200.3Paid expense $1,200.4Purchased supplies on account, $800.5Paid owner’s personal use, $750.6Paid creditor, $1,5007Supplies used during the period, $630.4.AssetsLiabilitiesEquity Beginning275,00080,000195,000 Add. investment48,000 Add. Net ine27,000 Less withdrawals35,000Ending320,00085,000235,0005.(a)March 31, 20XXApril 30, 20XXAssets Cash 4,5005,400 Accounts receivable2,5604,100Supplies840450 Total assets7,9009,950Liabilities Accounts payable430690Equity Tina Pierce, Capital7,4709,260(b) net ine = 9,2607,470=1,790(c) net ine = 1,790+2,500=4,290Chapter 21.a. To increase Notes Payable CRb. To decrease Accounts ReceivableCRc. To increase Owner, Capital CRd. To decrease Unearned Fees DRe. To decrease Prepaid Insurance CRf. To decrease Cash CRg. To increase Utilities Expense DRh. To increase Fees Earned CRi. To increase Store Equipment DRj. To increase Owner, Withdrawal DR2.a.Cash1,800 Accounts payable 1,800b.Revenue 4,500 Accounts receivable 4,500c.Owner’s withdrawals 1,500 Salaries Expense 1,500d.Accounts Receivable 750 Revenue 7503. Prepare adjusting journal entries at December 31, the end of the year.Advertising expense600 Prepaid advertising 600Insurance expense (2160/12*2)360 Prepaid insurance360Unearned revenue2,100 Service revenue2,100Consultant expense900 Prepaid consultant900Unearned revenue3,000 Service revenue3,0004. 1. $388,4002. $22,5203. $366,6004. $21,8005. 1. net loss for the year ended June 30, 2002: $60,0002. DR Jon Nissen, Capital 60,000 CR ine summary 60,0003. postclosing balance in Jon Nissen, Capital at June 30, 2002: $54,000Chapter 31. Dundee Realty bank reconciliationOctober 31, 2009Reconciled balance $6,220 Reconciled balance $6,2202. April 7 Dr: Notes receivable—A pany 5400 Cr: Accounts receivable—A pany 5400 12 Dr: Cash Interest expense Cr: Notes receivable 5400June 6 Dr: Accounts receivable—A pany 5533 Cr: Cash 553318 Dr: Cash Cr: Accounts receivable—A pany 5533 Interest revenue 3. (a) As a whole: the ending inventory=685(b) applied separately to each product: the ending inventory=6254. The cost of goods available for sale=ending inventory + the cost of goods=80,000+200,000*500%=80,000+1,000,000=1,080,0005.(1) 24,000+60,00090,000*=12000(2) (60,000+24,000)/( 85,000+31,000)*( 85,000+31,00090,000)=18828Chapter 41. (a) secondyear depreciation = (114,000 – 5,700) / 5 = 21,660。 (b) secondyear depreciation = 8,600 * (114,000 – 5,700) / 36,100 = 25,800。 (c) firstyear depreciation = 114,000 * 40% = 45,600 secondyear depreciation = (114,000 – 45,600) * 40% = 27,360。 (d) secondyear depreciation = (114,000 – 5,700) * 4/15 = 28,880.2. (a) weightedaverage accumulated expenditures (2008) = 75,000 * 12/12 + 84,000 * 9/12 + 180,000 * 8/12 + 300,000 * 7/12 + 100,000 * 6/12 = 483,000 (b) interest capitalized during 2008 = 60,000 * 12% + ( 483,000 – 60,000) * 10% =49,5003. (1) depreciation expense = 30,000 (2) book value = 600,000 – 30,000 * 2=540,000 (3) depreciation expense = ( 600,000 – 30,000 * 8)/16 =22,500 (4) book value = 600,000 – 30,000 * 8 – 22,500 = 337,5004. Situation 1: Jan 1st, 2008 Investment in M 260,000 Cash 260,000 June 30 Cash 6000 Dividend revenue 6000Situation 2:January 1, 2008 Investment in S 81,000 Cash 81,000June 15 Cash 10,800 Investment in S 10,800December 31 Investment in S 25,500 Investment Revenue 25,5005. a. December 31, 2008 Investment in K 1,200,000 Cash 1,200,000 June 30, 2009 Dividend Receivable 42,500 Dividend Revenue 42,500 December 31, 2009 Cash 42,500 Dividend Receivable 42,500 b. December 31, 2008 Investment in K 1,200,000 Cash 1,200,000 December 31, 2009 Cash 42,500 Investment in K 42,500 Investment in K 146,000