Accounting For H.C. Mngrs

All of the following are stockholders' equity accounts except: Investment in Stock. Dividends. Common Stock. Retained Earnings.

Investment in Stock.

What is the balance sheet equation?

Assets = Liabilities + Stockholders' Equity

In a corporation, Retained Earnings is a part of stockholders' equity. True False

True

All of the following are property, plant, and equipment except: machinery. supplies. land. buildings.

supplies.

Presented below is the basic accounting equation. Determine the missing amounts. (a) $78,000 = $59,000 + $X (b)$X = $44,000 + $78,000 (c)$97,000 = $X + $67,000

(a) $19,000 (b) $122,000 (c) $30,000

On the balance sheet, what goes under ASSETS?

Cash, prepaid expenses, accounts receivable, equipment, inventory, and fixed assets. Basically anything "receivable".

A current asset is: an asset that a company expects to convert to cash or use up within one year. an asset which is currently being used to produce a product or service. the last asset purchased by a business. usually found as a separate classification in the income statement.

an asset that a company expects to convert to cash or use up within one year.

Liabilities are generally classified on a balance sheet as: tangible liabilities and intangible liabilities. small liabilities and large liabilities. present liabilities and future liabilities. current liabilities and long-term liabilities.

current liabilities and long-term liabilities.

Given the accounting equation, answer each of the following questions. (a) The liabilities of Blue Spruce Company are $128,000 and its stockholders' equity is $224,500. What is the amount of Blue Spruce Company's total assets? (b) The total assets of Blue Spruce Company are $190,000 and its stockholders' equity is $81,500. What is the amount of its total liabilities? (c) The total assets of Blue Spruce Company are $560,500 and its liabilities are equal to one-half of its total assets. What is the amount of Blue Spruce Company's stockholders' equity?

(a) $352,500 (b) $108,500 (c) $280,250

Indicate whether each of the following items is an asset, liability, or part of stockholders' equity. (a)Accounts receivable (b)Salaries and wages payable (c)Equipment (d)Supplies (e)Dividends (f)Notes payable

(a) Asset (b) Liability (c) Asset (d) Asset (e) SE (f) Liability

On the balance sheet, what goes under LIABILITIES?

Accounts payable, accrued liabilities, customer prepayments, taxes payable, wages and salaries payable SHORT-TERM DEBT, and LONG-TERM DEBT. Basically anything "payable".

On the balance sheet, what goes under STOCKHOLDER'S EQUITY?

Stock, additional paid-in capital, retained earnings (revenue minus expenses), and treasury stock.

Indicate whether the following items would appear on the income statement, balance sheet, or retained earnings statement. (a)Notes payable (b)Advertising expense (c)Common stock (d)Cash (e)Service revenue (f)Dividends

a) Balance Sheet b) Income Statement c) Balance Sheet d) Balance Sheet e) Income Statement f) Retained Earnings

Salaries and Wages Payable is classified as a: current liability . long-term liability. intangible liability. non-current liability.

current liability Salaries and Wages Payable is classified as a current liability since it will be paid within the coming year.

An intangible asset: is worthless because it has no physical substance. does not have physical substance, yet often is very valuable. cannot be classified on the balance sheet because it lacks physical substance. is converted into a tangible asset during the operating cycle.

does not have physical substance, yet often is very valuable.

Efficient management of net working capital can result in: higher profits. fewer sales. lower cash flow. greater costs.

higher profits.

On a classified balance sheet, current assets are customarily listed: with the largest dollar amounts first. in the order of liquidity. in alphabetical order. in the order of acquisition.

in the order of liquidity.

On the balance sheet, companies usually list current assets in the order of largest to smallest. True False

False Companies usually list current assets on the balance sheet in the order in which they expect to convert them into cash.

The operating cycle of a company is determined by the number of years the company has been operating. True False

False

Current assets are customarily the first items listed on a classified balance sheet. True False

True

The following accounts were taken from the financial statements of Lee Company. Match each of the accounts to its proper balance sheet classification. If the item would not appear on a balance sheet, use "Not Applicable."

Accounts - Balance Sheet Classification Interest revenue - Not Applicable Utilities payable - Current Liabilities Accounts payable - Current Liabilities Supplies - Current Assets Bonds payable - Long Term Liabilities Good Will - Intangible Assets Common Stock - Stockholders Equity Accumulated Depreciation (Equipment) - Property Plant & Equipment Equipment - Property Plant & Equipment Salaries and Wage Expenses - Not Applicable Debt Investments (Long-Term) - Long Term Investments Unearned Rent Revenue - Current Liabilities

These financial statement items are for Culver Company at year-end, July 31, 2019. Salaries and wages payable$ 2,000 Notes payable (long-term)$ 2,100 Salaries and wages expense51,200 Cash15,200 Utilities expense22,600 Accounts receivable9,300 Equipment30,300 Accumulated depreciation-equipment5,700 Accounts payable5,000 Dividends3,200 Service revenue62,300 Depreciation expense4,400 Rent revenue8,100 Retained Earnings (beginning of the year)21,000 Common Stock30,000

Culver Company Income Statement For The Year Ended July 31, 2019 _Revenues_ Service Revenue $62,300 Rent Revenue $8,100 Total Revenue $70,400 _Expenses_ Salaries and Wages Expense $51,200 Utilities Expense $22,600 Depreciation Expense $4,400 Net Income / Loss $(7,800) --- Culver Company Retained Earnings Statement For The Year Ended July 31, 2019 Retained Earning Aug 1st, 2018 $21,000 Less: Net Income / Loss $7,800 Less: Dividends $3,200 Retained Earnings, July 31, 2019 $10,000 --- Culver Company Balance Sheet ASSETS _Current Assets_ Cash 15,200 Accounts Receivable 9,300 Total Current Assets 24,500 _Property Plant & Equipment_ Equipment $30,300 Less: Accumulated Depreciation - Equipment $5,700 Total Assets $49,100 LIABILITIES AND STOCK HOLDER'S EQUITY Current Liabilities Accounts Payable $5,000 Salaries & Wages Payable $2,000 Total Current Liabilities $7,000 - Long Term Liabilities Notes Payable $2,100 Total Liabilities $9,100 - Stock Holder's Equity Retained Earnings $10,000 Common Stock $30,000 Total SE: $40,000 - Total Liabilities and SE $49,100

Which of the following would not be classified a long-term liability? Lease liabilities Current maturities of long-term debt Bonds payable Mortgage payable

Current maturities of long-term debt

Classify each of the following items as dividends, revenue, or expense. (a)Advertising expense (b)Service revenue (c)Insurance expense (d)Salaries and wages expense (e)Dividends (f)Rent revenue (g)Utilities expense

a) expense b) revenue c) expense d) expense e) dividends f) revenue g) expense