ACCT 4A

¡Supera tus tareas y exámenes ahora con Quizwiz!

Great City BuilderGreat City Builder​'s balance sheet data at May​ 31, 2018​, and June​ 30, 2018​, ​follow: May 31, 2018 June 30, 2018 Total Assets $155000 202000 Total Liabilities $144000 77000 Begin by identifying the accounting equation and the formula to calculate the change in the​ stockholders' equity during a period For each of the following situations that occurred in​ June, 2018 with regard to common stock and dividends of a​ corporation, compute the amount of net income or net loss during June 2018. a. The company issued $7,500 of common stock and paid no dividends. b. The company issued no common stock. It paid cash dividends of $9,000. c. The company issued $ 12 comma 000$12,000 of common stock and paid cash dividends of $8,000.

Accounting equation: Assets= liabilities + equity Stockholders equity equation: Beg. equity + Common stock issued + Net income or - Net loss - Dividends = End. equity May 31 2018 Assets- liabilities = equity 155000-144000= 11000 June 30 2018 202000-77000= 125000 a. Ending equity - Beg equity - common stock + dividends = Net income/ loss 125000-11000-7500+0=106,5000 b. 123,000 c. 110,000

For each of the users of accounting​ information, identify whether the user is an external decision maker​ (E) or an internal decision maker​ (I): a. customer b. company manager c. Internal Revenue Service d. lender e. investor f. controller g. cost accountant h. SEC

a. E b. I c. E d. E e. E f. I g. I h. E

Michael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State College. The business has cash of​ $8,000 and furniture that cost​ $9,000 and has a market value of​ $13,000. The business debts include accounts payable of​ $6,000. Michael's personal home is valued at​ $400,000, and his personal bank account has a balance of​ $1,200. Identify the principle or assumption that best matches the​ situation: a. Michael's personal assets are not recorded on the Apartment​ Exchange's balance sheet. b. The Apartment Exchange records furniture at its cost of​ $9,000, not its market value of​ $13,000. c. The Apartment Exchange reports its financial statements in U.S. dollars. d. Michael expects the Apartment Exchange to remain in operations for the foreseeable future.

a.​ Michael's personal assets are not recorded on the​ company's balance​ sheet: ANS: the economic entity assumption. b. The company records furniture at its cost of​ $9,000, not its market value of​ $13,000: ANS: the cost principle c. The company records its financial statements in U.S.​ dollars: ANS: the monetary unit assumption. d. Michael expects the company to remain in operations for the foreseeable​ future: ANS: the going concern assumption.


Conjuntos de estudio relacionados

Network+ Computer Networking (Chapters 6, 8-11) (FINAL)

View Set

Chapter 24: Management of Patients with Structural, Infectious, and Inflammatory Cardiac Disorders PrepU Questions

View Set

Psychology Research Methods (Questionnaires)

View Set

Intro to Business Review: Chapter 4

View Set