ACC

Assets = Liabilities + Owner's Equity

$83,000 = $58,000 + $25,000

May 31 is a Wednesday, and employees are paid on Fridays. Clark Consulting has two employees, who are paid $1,100 each for a 5-day work week.

1,100/5=220 220x3(days they worked)=660 660x2(employees)=1320

Indicate whether each of the following items is an asset, liability, or part of owner's equity. A) Accounts Receivable B) Salaries and Wages Payable C) Equipment D) Supplies E) Owner's Capital F) Notes Payable

A) Asset B) Liability C) Asset D) Asset E) Owner's Equity F) Liability

Indicate whether the following items would appear on the income statement, balance sheet, or owner's equity statement. A) Notes Payable B) Advertising Expense C) Owner's Capital D) Cash E) Service Revenue

A) Balance Sheet B) Income Statement C) Balance Sheet and Owner's Equity Statement D) Balance Sheet E) Income Statement

Identify each of the questions as being more likely asked by an internal user or external user. A) Internal B) External C) Internal D) External E) Internal F) Internal G) External

A) Can WE afford to give our employees a pay raise B) Did THE COMPANY earn a satisfactory income C) Do WE need to borrow in the near future D) How does THE COMPANY'S profitability compare to other companies E) What does it cost US to manufacture each unit produced F) Which product should WE emphasize G) Will THE COMPANY be able to pay its short-term debts

identity the users as being either external users or internal users. A) External B) External C) External D) Internal E) Internal F) External G) Internal H) External I) Internal

A) Customers B) Internal Revenue Service C) Labor Unions D) Marketing Manager E) Production Supervisor F) Securities and Exchange Commission G) Store Manager H) Suppliers I) Vice president of finance

Classify each of the following items as owner's drawings, revenue, or expense. A) Advertising Expense B) Service Revenue C) Insurance Expense D) Salaries and wages expense E) Owner's Drawings F) Rent Revenue G) Utilities Expense

A) Expense B) Revenue C) Expense D) Expense E) Owner's Drawings F) Revenue G) Expense

Diehl Cleaners has the following balance sheet items. Classify each item as an asset, liability, or owner's equity. A) Accounts payable B) Cash C) Equipment D) Supplies E) Accounts receivable F) Notes Payable G) Salaries and wages payable H) Owner's Capital

A) Liability B) Asset C) Asset D) Asset E) Asset F) Liability G) Liability H) Owner's Equity

An accounting record of increases and decreases in specific assets, liabilities, and owner's equity items.

Account

Prepare a Balance Sheet at June 30, 2020

Balance Sheet "June 30, 2020" ASSETS Cash - $10,000 Accounts Receivable - $3,100 Supplies - $1,500 Equipment - $11,000 Total Assets - $25,600 LIABILITIES AND OWNER'S EQUITY Liabilities Accounts Payable - $1,100 Notes Payable - $8,700 Total Liabilities - $9,800 Owner's Equity Owner's Capital - $15,800 Total Liabilities and Owner's Equity - $25,600

A list of all the accounts used by a business or enterprise

Chart of Accounts

A decrease in Accounts Receivable

Credit

A decrease in Office Supplies

Credit

A decrease in Store Equipment

Credit

Accounts Payable

Credit

An increase in Owner's Capital

Credit

An increase in Service Revenue

Credit

Notes Payable

Credit

Owner's Capital

Credit

Service Revenue

Credit

On June 1, Lisa Anderson started Wildhorse Designs Co., a company that provides craft opportunities, by investing $12,150 cash in the business. Following are the assets and liabilities of the company at June 30 and the revenues and expenses for the month of June. Cash - $10,000 Accounts Receivable - $3,100 Supplies - $1,500 Equipment - $11,000 Notes Payable - $8,700 Accounts Payable - $1,100 Service Revenue - $7,200 Advertising Expense - $400 Rent Expense - $1,400 Gasoline Expense - $200 Utilities Expense - $150

Income Statement "For the Month Ended June 30, 2020" Revenues Service Revenue - $7,200 Expenses Rent Expense - $1,400 Advertising Expense - $400 Gasoline Expense - $200 Utilities Expense - $150 Total Expenses - $2,150 Net Income / (loss) - $5,050

The following information relates to Sunland Co. for the year 2020 Owner's capital, January 1, 2020 - $52,421 Owner's drawings during 2020 - $6,553 Service revenue - $69,458 Salaries and wages expense - $32,217 Advertising Expense - $1,966 Rent expense - $11,358 Utilities expense - $3,386

Income Statement "For the Year Ended December 31, 2020" Revenues Service revenue - $69,458 Expenses Salaries and wages expense - $32,217 Rent expense - $11,358 Advertising Expense - $1,966 Utilities expense - $3,386 Total Expenses - $48,927 Net Income / (Loss) - $20,531

Presented below is financial information related to the 2020 operations of Sunland Cruise Company. Maintenance and repairs expense - $91,000 Utilities expense - $10,100 Salaries and wages expense - $140,000 Advertising expense - $30,400 Ticket Revenue - $404,000

Income Statement "For the Year Ended December 31, 2020" Revenues Ticket Revenue - $404,000 Expenses Salaries and wages expense - $140,000 Maintenance and Repairs Expense - $91,000 Advertising Expense - $30,400 Total Expenses - $271,500 Net Income / (Loss) - $132,500

Transactions for the Oleg Thorn Company for the month of June are presented below. June 1 Oleg Thorn invests $5,000 cash in a small welding business of which he is the sole proprietor. 2 Purchases equipment on account for $3,600. 3 $800 cash is paid to landlord for June rent. 12 Sends a bill to K. Johnsen for $400 after completing welding work done on account. Identify the accounts to be debited and credited for each transaction.

June 1 - Cash (debit) / Owner's capital (credit) June 2 - Equipment (debit) / Accounts payable (credit) June 3 - Rent Expense (debit) / Cash (credit) June 12 - Accounts Receivable (debit) / service revenue (credit)

The side which increases an account.

Normal account balance

Prepare an owner's equity statement for the month of June.

Owner's Equity Statement "For the Month Ended June 30, 2020" Owner's Capital, June 1 - $0 Add: Investments - $12,150 Net Income / (Loss) - $5,050 ((Add together)) - $17,200 $17,200 Less: Drawings - $1,400 Owner's Capital, June 30 - $15,800

After analyzing the data, prepare an owner's equity statement for the year ending December 31, 2020

Owner's Equity Statement "For the Year Ended December 31, 2020" Owner's Capital, January 1 - $52,421 Add: Net Income / (Loss) - $20,531 ((add those two together) - $72,952 Less: Drawings - $6,553 Owner's Capital, December 31 - $66,399

At the end of its first year, the trial balance of Sandhill Company shows Equipment $34,800 and zero balances in Accumulated Depreciation—Equipment and Depreciation Expense. Depreciation for the year is estimated to be $3,740. Prepare the adjusting entry for depreciation at December 31.

Picture

On July 1, 2019, Crane Co. pays $16,600 to Bramble Insurance Co. for a 4-year insurance contract. Both companies have fiscal years ending December 31. For Crane Co., journalize and post the entry on July 1 and the adjusting entry on December 31.

Picture

Selected transactions for M. Lily, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $14,700 cash in business. 3 Purchased used car for $4,410 cash for use in business. 9 Purchased supplies on account for $735. 11 Billed customers $3,528 for services performed. 16 Paid $515 cash for advertising. 20 Received $1,029 cash from customers billed on January 11. 23 Paid creditor $441 cash on balance owed. 28 Withdrew $1,470 cash for personal use by owner.

Picture

Selected transactions for Pina Colada Company during its first month in business are presented below. Sept. 1 Invested $13,000 cash in the business. 5 Purchased equipment for $10,000 paying $5,400 in cash and the balance on account. 25 Paid $1,700 cash on balance owed for equipment. 30 Withdrew $600 cash for personal use. Colada's chart of accounts shows No. 101 Cash, No. 157 Equipment, No. 201 Accounts Payable, No. 301 Owner's Capital, and No. 306 Owner's Drawings.

Picture

Selected transactions for Skysong's Dog Care are as follows during the month of March. March 1 Paid monthly rent of $980. 3 Performed services for $110 on account. 5 Performed services for cash of $60. 8 Purchased equipment for $490. The company paid cash of $65 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid salaries and wages to employees of $430. 22 Paid utilities of $60. 24 Borrowed $1,230 from Grafton State Bank by signing a note. 27 Paid $180 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,440 for six months of insurance

Picture

The accounts in the ledger of Sheridan Delivery Service contain the following balances on July 31, 2020. Accounts Receivable $6,600 Prepaid Insurance $2,300 Accounts Payable 8,800 Maintenance and Repairs Expense 800 Cash ? Service Revenue 10,000 Equipment 51,000 Owner's Drawings 500 Gasoline Expense 500 Owner's Capital 43,000 Utilities Expense 700 Salaries and Wages Expense 4,600 Notes Payable 18,000 Salaries and Wages Payable 600

Picture

Vera Ernst is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April 1 Invested $19,000 cash in her business. 1 Hired a secretary-receptionist at a salary of $600 per week payable monthly. 2 Paid office rent for the month $1,300. 3 Purchased dental supplies on account from Dazzle Company $3,000. 10 Performed dental services and billed insurance companies $5,400. 11 Received $1,100 cash advance from Leah Mataruka for an implant. 20 Received $2,000 cash for services performed from Michael Santos. 30 Paid secretary-receptionist for the month $2,400. 30 Paid $2,000 to Dazzle for accounts payable due.

Picture

Selected transactions for M. Acosta, an interior decorator, in her first month of business, are as follows. Jan. 2 Invested $10,000 cash in business. 3 Purchased used car for $3,000 cash for use in business. 9 Purchased supplies on account for $600. 11 Billed customers $2,400 for services performed. 16 Paid $350 cash for advertising. 20 Received $900 cash from customers billed on January 11. 23 Paid creditor $300 cash on balance owed. 28 Withdrew $1,000 cash for personal use by owner. For each transaction, indicate the following. January 2 transaction is given as an example. (a) The basic type of account debited and credited. (b) The specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.). (c) Whether the specific account is increased or decreased. (d) The normal balance of the specific account.

Picture (sorry guys)

Has a normal credit balance

Revenue account

A list of accounts and their balances at a given time

Trial Balance

An entry that involves three or more accounts

compound entry

book of original entry

journal

Transferring journal entries to ledger accounts

posting

An entry that involves only two accounts

simple entry

A decrease in Accounts Payable

Debit

Accounts Receivable

Debit

An increase in Owner's Drawings

Debit

An increase in Prepaid Insurance

Debit

An increase in Rent Expense

Debit

An increase in Salary Expense

Debit

Insurance Expense

Debit

Owner's Drawings

Debit

Rent Expense

Debit

The left side of an account is

Debit

office building

Debit

office supplies

Debit

Owner's Capital

Debit for decrease Credit for increase Normal Balance - Credit

Service Revenue (revenue)

Debit for decrease Credit for increase Normal Balance - Credit

Accounts payable (liability)

Debit for decrease Credit for increase Normal Balance - credit

Accounts Receivable (asset)

Debit for increase Credit for decrease Normal Balance - Debit

Advertising Expense (expense)

Debit for increase Credit for decrease Normal Balance - Debit

Owner's Drawings

Debit for increase Credit for decrease Normal Balance - Debit