Solutions to Tutorial #1:
FS Overview & Accounting Mechanics
Chapter 2
AA 2-7 Carrefour
Real Company Analysis
1. 2019 CA: 18,875 million, as 37.2% of total assets.
2018 CA: 18,670 million, as 39.4% of total assets.
The balance of current assets slightly increased in 2019 due to the offsetting
changes of inventory (decrease) and other current assets such as cash, trades
receivable (increases). However, the balance of non-current assets also in-
creased in 2019 due to the increase of right-of-use assets. Since the increase
of non-current assets is more than the increase of current assets, the ratio is
decreasing.
2. 2018 16,154/72,355 = 22%
2019 16,088/72,397 = 22%
There was no significant change in gross profit percentage.
CHAPTER 3
E 3-1 (LO2) Accounting Equation
Transaction Assets = Liabilities + Equity
1. Took out school loan Increase (Cash) Increase
(School loan)
2. Paid month’s rent Decrease (Cash) Decrease (Increase
in expenses)
3. Sold computer Increase (Cash)
Decrease (Computer)
4. Received paycheck Increase (Cash) Increase (Increase
in revenues)
5. Received interest Increase (Cash) Increase (Increase
in revenues)
1
6. Made car payment Decrease (Cash) Decrease Decrease (Increase
(Car loan) in expenses)
E 3-4 (LO2) Classification of Accounts
1. A
2. OE—R
3. A
4. OE—E
5. OE
6. L
7. OE—E
8. OE
9. L
10. L
11. OE—R
12. A
13. L
14. A
15. A
16. OE—E
17. L
18. OE—E
2
P 3-6 (LO3, LO4) Unifying Concepts: Compound Journal Entries, Posting, Trial
Balance
1. (a) Cash ....................................................................... 30,000
Supplies ................................................................. 2,500
Land ....................................................................... 20,000
Buildings ................................................................ 165,000
Office Equipment .................................................. 13,500
Notes Payable .................................................. 6,000
Capital Stock .................................................... 225,000
(b) Cash ....................................................................... 20,000
Accounts Receivable ............................................ 32,000
Service Revenue .............................................. 52,000
(c) Notes Payable ....................................................... 6,000
Interest Expense ................................................... 500
Cash .................................................................. 6,500
(d) Supplies ................................................................. 1,400
Cash .................................................................. 600
Notes Payable .................................................. 800
(e) Office Equipment .................................................. 12,000
Cash .................................................................. 6,000
Capital Stock .................................................... 6,000
(f) Transportation equipment ................................... 25,000
Cash .................................................................. 5,000
Notes Payable .................................................. 20,000
2.
Cash Accounts Receivable Supplies
(a) 30,000 (c) 6,500 (b) 32,000 (a) 2,500
(b) 20,000 (d) 600 (d) 1,400
(e) 6,000
(f) 5,000
Bal. 31,900 Bal. 3,900
Land Buildings
(a) 20,000 (a) 165,000
3
Office Equipment Transportation Equipment Notes Payable
(a) 13,500 (f) 25,000 (c) 6,000 (a) 6,000
(e) 12,000
(d) 800
(f) 20,000
Bal. 25,500 Bal. 20,800
Capital Stock Service Revenue Interest Expense
(a) 225,000 (b) 52,000 (c) 500
(e) 6,000
Bal. 231,000
3. Shaw Company
Trial Balance
December 31, 2022
Debit Credit
Cash ............................................................................... $ 31,900
Accounts Receivable .................................................... 32,000
Supplies ......................................................................... 3,900
Land................................................................................ 20,000
Buildings ........................................................................ 165,000
Office Equipment .......................................................... 25,500
Transportation equipment............................................ 25,000
Notes Payable................................................................ $ 20,800
Capital Stock ................................................................. 231,000
Service Revenue ........................................................... 52,000
Interest Expense ........................................................... 500
Totals ........................................................................ $303,800 $303,800
