Question 1

Indicate which of these items is an asset (A), liability (L) or owner's equity (OE) account.
_______ (1) Supplies
_______ (2) Klein, Drawing
_______ (3) Building
_______ (4) Note Payable
_______ (5) Taxes Payable

Accepted Answer

The answer of Indicate which of these items is an...

Question 2

Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS).
1. Cash
2. Service Revenue
3. Notes Payable
4. Interest Expense
5. Accounts Receivable

Accepted Answer

The answer of Identify whether the following items would be...

Question 3

Determine the missing items.

Accepted Answer

The answer of Determine the missing items. ...

Question 4

Listed below in alphabetical order are the balance sheet items of Rowan Company at December 31, 2009. Prepare a balance sheet and include a complete heading.

Accepted Answer

The answer of Listed below in alphabetical order are the...

Question 5

Match the following external users of financial accounting information with the type of decision that user will make with the information.
a. Creditor
b. Investor
c. Regulatory Agency
d Internal Revenue Service
_______ (1) Is the company operating within prescribed guidelines?
_______ (2) Is the company complying with tax laws?
_______ (3) Is the company able to pay its debts?
_______ (4) Is the company a good investment?
Solution 164

Accepted Answer

The answer of Match the following external users of financial...

Question 6

Match the following terms and definitions.
a. Accounts receivable c. Accounts payable
b. Creditor d. Note payable
_______ (1) Amounts due from customers
_______ (2) Amounts owed to suppliers for goods and services purchased
_______ (3) Amounts owed to bank
_______ (4) Party to whom money is owed
Solution 165

Accepted Answer

The answer of Match the following terms and definitions.
a. Accounts...

Question 7

Classify each of these items as an asset (A), liability (L), or owner's equity (OE).
_____ 1. Accounts receivable
_____ 2. Accounts payable
_____ 3. Mantle's, Capital
_____ 4. Office supplies
_____ 5. Utilities expense
_____ 6. Cash
_____ 7. Note payable
_____ 8. Equipment

Accepted Answer

The answer of Classify each of these items as an...

Question 8

Use the following information to calculate for the year ended December 31, 2009 (a) net income (net loss), (b) ending owner's equity, and (c) total assets.

Accepted Answer

The answer of Use the following information to calculate for...

Question 9

Ryder Company purchases $600 of equipment from Montez Inc. for cash. The effect on the components of the basic accounting equation of Ryder Company is
A) an increase in assets and liabilities.
B) a decrease in assets and liabilities.
C) no change in total assets.
D) an increase in assets and a decrease in liabilities.

Accepted Answer

When Ryder Company purchases equipment for cash, one asset (cash) decreases while another asset (equipment) increases by the same amount, resulting in no change in total assets.

Question 10

At the beginning of 2008, Bonds Company had total assets of $550,000 and total liabilities of $330,000. Answer each of the following questions.
1. If total assets increased $60,000 and owner's equity decreased $90,000 during the year, determine the amount of total liabilities at the end of the year.
2. During the year, total liabilities decreased $75,000 and owner's equity increased $50,000. Compute the amount of total assets at the end of the year.
3. If total assets decreased $100,000 and total liabilities increased $55,000 during the year, determine the amount of owner's equity at the end of the year.

Accepted Answer

The answer of At the beginning of 2008, Bonds Company...

Question 11

Jill's Car Cleaning has the following balance sheet items:  
Identify which items are (1) Assets
(2) Liabilities
(3) Owner's Equity

Accepted Answer

The answer of Jill's Car Cleaning has the following balance...

Question 12

The Roy's Downtown Diner received a bill of $400 from the Emeril Advertising Agency. The owner, Roy James, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is
A) a decrease in Cash and an increase in Accounts Payable.
B) a decrease in Cash and an increase in R. James, Capital.
C) an increase in Accounts Payable and a decrease in R. James, Capital.
D) a decrease in Accounts Payable and an increase in R. James, Capital.

Accepted Answer

The answer of The Roy's Downtown Diner received a bill...

Question 13

Balance sheet amounts as of December 31, 2009 for Lori's Learning Service are listed below. Prepare a balance sheet in good form.

Accepted Answer

The answer of Balance sheet amounts as of December 31,...

Question 14

Determine the missing amount for each of the following.

Accepted Answer

The answer of Determine the missing amount for each of...

Question 15

Fontaine Fox Company buys a $12,000 van on credit. The transaction will affect the
A) income statement only.
B) balance sheet only.
C) income statement and owner's equity statement only.
D) income statement, owner's equity statement, and balance sheet.

Accepted Answer

The purchase of a van on credit affects the balance sheet only, as it increases assets (van) and liabilities (credit) without impacting the income statement or owner's equity statement.

Question 16

On June 1, 2009, Bush Company prepared a balance sheet that shows the following:  
Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

Accepted Answer

The answer of On June 1, 2009, Bush Company prepared...

Question 17

At the beginning of the year, Keats Company had total assets of $550,000 and total liabilities of $200,000. Answer the following questions viewing each situation as being independent of the others.
(1) If total assets increased $200,000 during the year, and total liabilities decreased $75,000, what is the amount of owner's equity at the end of the year?
(2) During the year, total liabilities increased $230,000 and owner's equity decreased $90,000. What is the amount of total assets at the end of the year?
(3) If total assets decreased $40,000 and owner's equity increased $130,000 during the year, what is the amount of total liabilities at the end of the year?

Accepted Answer

The answer of At the beginning of the year, Keats...

Question 18

Below is a list of important abbreviations widely used in business. For each abbreviation give the full designation.
1. CPA
2. IRS
3. FBI
4. FASB
5. GAAP
6. SEC

Accepted Answer

The answer of Below is a list of important abbreviations...

Question 19

Use the accounting equation to answer the following questions.
1. Force 10 Sails Co. has total assets of $120,000 and total liabilities of $35,000. What is owner's equity?
2. Marcy Fun Center has total assets of $225,000 and owner's equity of $105,000. What are total liabilities?
3. Franco's Restaurant has total liabilities of $40,000 and owner's equity of $95,000. What are total assets?

Accepted Answer

The answer of Use the accounting equation to answer the...

Question 20

Identify the impact on the accounting equation of each of the following transactions.
1. Purchase office supplies on account.
2. Paid secretary weekly salary.
3. Purchased office furniture for cash.
4. Received monthly utility bill to be paid at later time.

Accepted Answer

The answer of Identify the impact on the accounting equation...

Quiz 1: Accounting in Action

Indicate which of these items is an asset (A), liability (L) or owner's equity (OE) account. ___ (1) Supplies _ (2) Klein, Drawing _ (3) Building _ (4) Note Payable _____ (5) Taxes Payable

Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS). 1. Cash 2. Service Revenue 3. Notes Payable 4. Interest Expense 5. Accounts Receivable

Determine the missing items.

Listed below in alphabetical order are the balance sheet items of Rowan Company at December 31, 2009. Prepare a balance sheet and include a complete heading.

Match the following terms and definitions. a. Accounts receivable c. Accounts payable b. Creditor d. Note payable ___ (1) Amounts due from customers _ (2) Amounts owed to suppliers for goods and services purchased _ (3) Amounts owed to bank ___ (4) Party to whom money is owed Solution 165

Classify each of these items as an asset (A), liability (L), or owner's equity (OE). ___ 1. Accounts receivable _ 2. Accounts payable _ 3. Mantle's, Capital _ 4. Office supplies _ 5. Utilities expense _ 6. Cash _ 7. Note payable ___ 8. Equipment

Use the following information to calculate for the year ended December 31, 2009 (a) net income (net loss), (b) ending owner's equity, and (c) total assets.

Ryder Company purchases $600 of equipment from Montez Inc. for cash. The effect on the components of the basic accounting equation of Ryder Company is

Jill's Car Cleaning has the following balance sheet items: Identify which items are (1) Assets (2) Liabilities (3) Owner's Equity

The Roy's Downtown Diner received a bill of $400 from the Emeril Advertising Agency. The owner, Roy James, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

Balance sheet amounts as of December 31, 2009 for Lori's Learning Service are listed below. Prepare a balance sheet in good form.

Determine the missing amount for each of the following.

Fontaine Fox Company buys a $12,000 van on credit. The transaction will affect the

On June 1, 2009, Bush Company prepared a balance sheet that shows the following: Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

Below is a list of important abbreviations widely used in business. For each abbreviation give the full designation. 1. CPA 2. IRS 3. FBI 4. FASB 5. GAAP 6. SEC

Identify the impact on the accounting equation of each of the following transactions. 1. Purchase office supplies on account. 2. Paid secretary weekly salary. 3. Purchased office furniture for cash. 4. Received monthly utility bill to be paid at later time.

Quiz 1: Accounting in Action

Indicate which of these items is an asset (A), liability (L) or owner's equity (OE) account. _______ (1) Supplies _______ (2) Klein, Drawing _______ (3) Building _______ (4) Note Payable _______ (5) Taxes Payable

Identify whether the following items would be reported on the income statement (IS) or balance sheet (BS). 1. Cash 2. Service Revenue 3. Notes Payable 4. Interest Expense 5. Accounts Receivable

Determine the missing items.

Listed below in alphabetical order are the balance sheet items of Rowan Company at December 31, 2009. Prepare a balance sheet and include a complete heading.

Classify each of these items as an asset (A), liability (L), or owner's equity (OE). _____ 1. Accounts receivable _____ 2. Accounts payable _____ 3. Mantle's, Capital _____ 4. Office supplies _____ 5. Utilities expense _____ 6. Cash _____ 7. Note payable _____ 8. Equipment

Use the following information to calculate for the year ended December 31, 2009 (a) net income (net loss), (b) ending owner's equity, and (c) total assets.

Ryder Company purchases $600 of equipment from Montez Inc. for cash. The effect on the components of the basic accounting equation of Ryder Company is

Jill's Car Cleaning has the following balance sheet items: Identify which items are (1) Assets (2) Liabilities (3) Owner's Equity

The Roy's Downtown Diner received a bill of $400 from the Emeril Advertising Agency. The owner, Roy James, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

Balance sheet amounts as of December 31, 2009 for Lori's Learning Service are listed below. Prepare a balance sheet in good form.

Determine the missing amount for each of the following.

Fontaine Fox Company buys a $12,000 van on credit. The transaction will affect the

On June 1, 2009, Bush Company prepared a balance sheet that shows the following: Shortly thereafter, all of the assets were sold for cash. How would the balance sheet appear immediately after the sale of the assets for cash for each of the following cases?

Below is a list of important abbreviations widely used in business. For each abbreviation give the full designation. 1. CPA 2. IRS 3. FBI 4. FASB 5. GAAP 6. SEC

Identify the impact on the accounting equation of each of the following transactions. 1. Purchase office supplies on account. 2. Paid secretary weekly salary. 3. Purchased office furniture for cash. 4. Received monthly utility bill to be paid at later time.

Indicate which of these items is an asset (A), liability (L) or owner's equity (OE) account. ___ (1) Supplies _ (2) Klein, Drawing _ (3) Building _ (4) Note Payable _____ (5) Taxes Payable

Classify each of these items as an asset (A), liability (L), or owner's equity (OE). ___ 1. Accounts receivable _ 2. Accounts payable _ 3. Mantle's, Capital _ 4. Office supplies _ 5. Utilities expense _ 6. Cash _ 7. Note payable ___ 8. Equipment