Question 1

Taryn Corporation
The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017:
​
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 $\begin{array}{lrlr}
\text { Sales revenue } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 42,000 & \text { Common stock } & 41,000 \
\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \
\text { Sal aries and wages expense } & 40,000 & \text { Cost of sales } & 51,000 \
\text { Inventories } & 22,000 & \text { Prepaid expenses } & 2,000 \
\text { Income taxes payable } & 5,000 & \text { Income taxes expense } & 18,000 \
\text { Notes payable } & 20,000 & \text { Retained earnings } & ?
\end{array}$ ​
-Read the information for Taryn Corporation and determine the following amounts.
 A) The balance of retained earnings at the end of 2017 .____________
B) The total stockholders' equity at the end of 2017 .________________
C) Name the two events that might cause stockholders' equity to increase.

Accepted Answer

The answer of Taryn Corporation
The accountant for Taryn Corporation prepared...

Question 2

The private sector group with authority to set accounting standards is the _______________________________________________.

Accepted Answer

The answer of The private sector group with authority to...

Question 3

Taryn Corporation
The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017:
​
​
 $\begin{array}{lrlr}
\text { Sales revenue } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 42,000 & \text { Common stock } & 41,000 \
\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \
\text { Sal aries and wages expense } & 40,000 & \text { Cost of sales } & 51,000 \
\text { Inventories } & 22,000 & \text { Prepaid expenses } & 2,000 \
\text { Income taxes payable } & 5,000 & \text { Income taxes expense } & 18,000 \
\text { Notes payable } & 20,000 & \text { Retained earnings } & ?
\end{array}$ ​
-Read the information for Taryn Corporation and prepare a balance sheet in good form.

Accepted Answer

The answer of Taryn Corporation
The accountant for Taryn Corporation prepared...

Question 4

Taryn Corporation
The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017:
​
​
 $\begin{array}{lrlr}
\text { Sales revenue } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 42,000 & \text { Common stock } & 41,000 \
\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \
\text { Sal aries and wages expense } & 40,000 & \text { Cost of sales } & 51,000 \
\text { Inventories } & 22,000 & \text { Prepaid expenses } & 2,000 \
\text { Income taxes payable } & 5,000 & \text { Income taxes expense } & 18,000 \
\text { Notes payable } & 20,000 & \text { Retained earnings } & ?
\end{array}$ ​
-Read the information for Taryn Corporation and determine the following amounts.
 A) Total revenues for 2017 ._________
B) Total expenses for 2017 .___________
C) What is the purpose of the income statement?
D) Is Taryn Corporation profitable? Expl ain your answer.
E) Is this the first year of operations for Taryn Corporation? Explain your answer.

Accepted Answer

The answer of Taryn Corporation
The accountant for Taryn Corporation prepared...

Question 5

The concept that assumes that an entity is not in the process of liquidation is _________________________.

Accepted Answer

The answer of The concept that assumes that an entity...

Question 6

___________________ means the presentation of information is free from bias toward a particular result.

Accepted Answer

The answer of ___________________ means the presentation of information is...

Question 7

Taryn Corporation
The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017:
​
​
 $\begin{array}{lrlr}
\text { Sales revenue } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 42,000 & \text { Common stock } & 41,000 \
\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \
\text { Sal aries and wages expense } & 40,000 & \text { Cost of sales } & 51,000 \
\text { Inventories } & 22,000 & \text { Prepaid expenses } & 2,000 \
\text { Income taxes payable } & 5,000 & \text { Income taxes expense } & 18,000 \
\text { Notes payable } & 20,000 & \text { Retained earnings } & ?
\end{array}$ ​
-Read the information for Taryn Corporation and determine the following amounts.
 A) Total assets at the end of 2017__________
B) Total liabilities at the end of 2017__________
C) What parties have a claim on Taryn Corporation's assets? Explain you answer in terms of the accounting equation.

Accepted Answer

The answer of Taryn Corporation
The accountant for Taryn Corporation prepared...

Question 8

The three types of business activities in which all corporations engage are _______________________,______________________,and _____________________.

Accepted Answer

The answer of The three types of business activities in...

Question 9

The names of the four financial statements are ________________________________,________________________________,________________________________,and ________________________________

Accepted Answer

The answer of The names of the four financial statements...

Question 10

Meredith Corporation is in the business of providing dog and cat grooming services to customers within the city of New York.The following information concerning financial activities during 2017 is available at December 31,2017:
​
​
 $\begin{array}{lrlr}
\text { Grooming revenue } & \$ 130,000 & \text { Salary and wage expense } & \$ 44,000 \
\text { Dividends declared and paid } & 13,000 & \text { Rent expense } & 24,000 \
\text { Equipment } & 40,000 & \text { Furniture } & 60,000 \
\text { Accounts payable } & 30,000 & \text { Accounts receivable } & 23,000 \
\text { Capital stock } & 22,000 & \text { Retaned earnings, Jan. } 1,2017 & 21,000 \
\text { Utilities expense } & 10,000 & \text { Notes payable } & 88,000 \
\text { Cash } & 33,000 & \text { Income tax expense } & 7,000
\end{array}$ A. Calculate net income for 2017 .
B. Prepare a statement of retained earnings for the year ended December $ 31,2017 $.
C. What information can you derive from the statement of retained earnings concerning this company? Explain.

Accepted Answer

The answer of Meredith Corporation is in the business of...

Question 11

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

Accepted Answer

The answer of The concept that assumes that assets are...

Question 12

The various methods,rules,practices,and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called __________________________________________________.

Accepted Answer

The answer of The various methods,rules,practices,and other procedures that have...

Question 13

The process of identifying,measuring,and communicating economic information to various users is called ____________________.

Accepted Answer

The answer of The process of identifying,measuring,and communicating economic information...

Question 14

_____________ is the type of accounting used by external parties.

Accepted Answer

The answer of _____________ is the type of accounting used...

Question 15

Good quality information should be both _____________ and present a __________________.

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The answer of Good quality information should be both _____________...

Question 16

In 2002,Congress passed the ________________ Act to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals.

Accepted Answer

The answer of In 2002,Congress passed the ________________ Act to...

Question 17

The federal government agency with the ultimate authority to determine the rules in preparing statements for companies whose stock is sold to the public is the __________________________________________________.

Accepted Answer

The answer of The federal government agency with the ultimate...

Question 18

Another name for net income of a business is _________________________.

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The answer of Another name for net income of a...

Question 19

Taryn Corporation
The accountant for Taryn Corporation prepared the following list of account balances from the company's records for the year ended December 31,2017:
​
​
 $\begin{array}{lrlr}
\text { Sales revenue } & \$ 165,000 & \text { Cash } & \$ 30,000 \
\text { Accounts receivable } & 14,000 & \text { Selling expenses } & 44,000 \
\text { Equipment } & 42,000 & \text { Common stock } & 41,000 \
\text { Accounts payable } & 12,000 & \text { Interest income } & 3,000 \
\text { Sal aries and wages expense } & 40,000 & \text { Cost of sales } & 51,000 \
\text { Inventories } & 22,000 & \text { Prepaid expenses } & 2,000 \
\text { Income taxes payable } & 5,000 & \text { Income taxes expense } & 18,000 \
\text { Notes payable } & 20,000 & \text { Retained earnings } & ?
\end{array}$ ​
-Read the information for Taryn Corporation and prepare an income statement in good form.

Accepted Answer

The answer of Taryn Corporation
The accountant for Taryn Corporation prepared...

Question 20

Vick Corporation has been in the business of delivering small packages for local companies within the city of Atlanta,Georgia,since 1960.The following information concerning financial activities during 2017 is available at December 31,2017:
​
​
 $\begin{array}{lrlr}
\text { Delivery revenue } & \$ 380,000 & \text { Salary and wage expense } & \$ 82,000 \
\text { Dividends declared and paid } & 85,000 & \text { Rent expense } & 43,000 \
\text { Buildings } & 140,000 & \text { Land } & 60,000 \
\text { Accounts payable } & 30,000 & \text { Accounts payable } & 30,000\
\text { Capital stock } & 105,000 & \text { Retained earnings, } \
\text { Water, gas, and } & & \text { January } 1,2017\
\text { electricity } & 28,000 & \text { Notes payable } & 34,000 \
\text { Cash } & 56,000 & \text { Income tax expense } & 18,000
\end{array}$ A. Prepare an income statement for the year ended December 31,2017 .
B. If you were a bank loan officer and Vick Corporation wanted to borrow $ \$ 100,000 $ from your bank, would you lend the money? Explain.
C. Calculate retained earnings at December $ 31,2017 $.

Accepted Answer

The answer of Vick Corporation has been in the business...

Quiz 1: Accounting As a Form of Communication

The private sector group with authority to set accounting standards is the _______________________________________________.

The concept that assumes that an entity is not in the process of liquidation is _________________________.

___________________ means the presentation of information is free from bias toward a particular result.

The three types of business activities in which all corporations engage are _,,and _.

The names of the four financial statements are ,,,and

The concept that assumes that assets are recorded at the amount to acquire them is called the _________________________.

The various methods,rules,practices,and other procedures that have evolved over time in response to the need to regulate the preparation of financial statements are called __________________________________________________.

The process of identifying,measuring,and communicating economic information to various users is called ____________________.

_____________ is the type of accounting used by external parties.

Good quality information should be both _ and present a ______.

In 2002,Congress passed the ________________ Act to bring reform to corporate accountability and stewardship in the wake of a number of major corporate scandals.

The federal government agency with the ultimate authority to determine the rules in preparing statements for companies whose stock is sold to the public is the __________________________________________________.

Another name for net income of a business is _________________________.