Accounting Chapters 1-3 Homework

Which account is associated with the ASSET financial statement element.

Cash

The company issues stock. This is what type of cash flow activity?

Financing

What financial statement is the Dividends account associated with?

Statement of Retained Earnings

The Unearned Service Revenue account is classified as a(n)

Liability

Long-term creditors are usually most interested in evaluating:

Liquidity and solvency

Which account is associated with the LIABILITIES financial statement element.

"payable" accounts

In 1998, Parker Corporation purchased land for $130,000. In 2010, Parker Company had the land appraised, and its value was estimated to be $190,000. Also during 2010, another company offered Parker $145,000 for the parcel of land. When the balance sheet is prepared at the end of 2010, at what dollar amount should the land be reported?

$130,000

Cash $10,000 Inventory $7,400 Accounts payable $59,400 Equipment $144,400 Revenue $79,400 Prepaid rent $3,600 Unearned revenue $35,400 Notes payable $59,400 Common Stock $119,400 Dividends $57,400 Expenses $22,400 Accounts receivable $31,400 Prepaid insurance $50,400 What are the total liabilities?

$154,200

Cash $10,000 Inventory $7,400 Accounts payable $59,400 Equipment $144,400 Revenue $79,400 Prepaid rent $3,600 Unearned revenue $35,400 Notes payable $59,400 Common Stock $119,400 Dividends $57,400 Expenses $22,400 Accounts receivable $31,400 Prepaid insurance $50,400 What are the total assets?

$247,200

Nez Company provided services for $7,500 cash during the 2012 accounting period. Nez incurred $6,000 expenses on account during 2012, and by the end of the year, $3,000 of that amount had been paid with cash. Nez paid dividends of $900 to stockholders during the year. Assume that these are the only accounting events that affected Nez during the 2012 accounting period. What is the cash flow from operation for 2012?

$4,500

If total liabilities increased by $69,000 during a period of time and stockholders' equity decreased by $27,000 during the same period, then the amount and direction (increase or decrease) of the period's change in total assets is a(n)

$42,000 increase.

At the beginning of the year BobCat Inc. assets were $650,000, liabilities were $110,000, and common stock was $90,000. Net income for the year was 280,000. Dividends of $220,000 were paid during the year. What is the ending balance for retained earnings in 2012?

$510,000

The balance sheet for Raymond Company shows total assets of $4,000, liabilities of $1,500, and retained earnings of $1,200. Based on this information, the amount of common stock must be:

1,300

Net income?

40,000

Jackson Company recorded the following cash transactions for the year: Paid $135,000 for salaries. Paid $60,000 to purchase office equipment. Paid $15,000 for utilities. Paid $6,000 in dividends. Collected $275,000 from customers. What was Jackson's net cash provided by operating activities?

125,000

Based on the following information, Cash $10,000 Inventory $31,000 Loan $26,000 Equipment $18,000 Revenue $103,000 Common Stock $143,000 Dividends $81,000 Expenses $46,000 Land $100,000 What are total assets?

159,000

Please, calculate Net income based on the information provided: Salary expense 21,200 Rent expense 5,400 Retained earnings 52,000 Cash 10,000 Advertisement expense 3,000 Service revenue 50,700

21,100

A company's retained earnings at the beginning and ending of the accounting period were $100,000 and $120,000, respectively. Common stock at the end of the year was $90,000. If the company had dividends of $3,000 and revenues of $280,000, the amount of expenses must have been?

257,000

GRAPH

428,000

GRAPH

480

What is Stockholders Equity? Assets=75,000 Liabilities=25,000

50,000

What is Assets? Liabilities=20,000 Common Stock=15,000 Retained Earnings=23,500

58,500

Which of the following is an asset?

Accounts Receivable

What type of account is an accounts receivable account?

Asset

What type of accounts are prepaid accounts?

Assets

What is the accounting equation?

Assets = Liabilities + Stockholders' Equity

What is the most probable name of the statement below? Assets: Cash 10,000 Land 100,000 Truck 30,000 Total Assets 140,000 Liabilities: Loan 50,000 Equity Common Stock 85,000 Retained earnings 5,000 Total Liabilities and Shareholders' Equity 140,000

Balance Sheet

Jack and Jill form a partnership. Jack runs the business in New York, while Jill vacations in Hawaii. During the time Jill is away from the business, Jack increases the debts of the business by $20,000. Which of the following statements is true regarding this debt?

Both jack and jill are personally liable

A document that is evidence of ownership in a business (i.e. a claim to a business' assets) is called:

Common Stock

Investing activities involve collecting necessary funds from investors

Fasle

Generally accepted accounting principles (GAAP) are measurement rules for:

Financial Accounting

Pick FALSE statement

Dividends paid will decrease revenue accounts

In a study session, a classmate makes this statement "Dividends are listed as expenses on the income statement." What is your best response to this statement?

Dividends represent a portion of corporate profits that are paid to the shareholders. They belong on the retained earnings statement.

A corporation has which of the following set of characteristics?

Easier to transfer ownership and raise funds, no personal liability

Which financial statement element is the common stock account associated with?

Equity

A company has to provide ALL available accounting information in the summarized format to current or potential investors.

False

A business is usually involved in two types of activity—financing and investing.

Fasle

Which of the following financial statements will be the most useful in evaluating company profitability?

Income Statement

The company pays cash for a building. This is what type of cash flow activity?

Investing

Which account is associated with the ASSET financial statement element.

Land

What type of account is the unearned revenue account?

Liabilities

The company pays cash for insurance. This is what type of cash flow activity?

Operating

Which ACCOUNT is associated with the EQUITY financial statement element. Note: Equity is also presented as Stockholders' Equity or Owners' Equity on the financial statements.

Retained Earnings

Which of the following is the most appropriate and modern definition of accounting?

The information system that identifies, records, and communicates the economic events of an organization to interested users

The motivation for an investor to provide resources to a business is:

To gain on share appreciation and/or potentially receive a portion of the Income of the company in the future

BobCat InC. paid $11,000 on October 1, 2017 for rent for a one year period beginning that date. As a result of this event:

Total Assets remained unchanged

The company paid $1 mln cash for a building. As a result of transaction:

Total assets remained unchanged

Prepaid insurance is an asset

True

Liabilities are:

claims of creditors

On June 1 the FL Store paid $18,000 to Acme Realty for 6 months rent beginning July 1. The company did the correct recording on June 1. What accounts of FL Store were affected

decrease in Cash, $18,000; increase in Prepaid Rent, $18,000

An item is considered material if:

it's mount that will influence the decision of the external user (creditor, investor) of financial information

An income statement

presents the revenues and expenses for a specific period of time.

Bathlinks Corporation has a debt to assets ratio of 73%. This tells the user of Bathlinks's financial statements that

there is a risk that Bathlinks cannot pay its debts as they come due.

JS Company collected $9,200 in May of 2017 for 5 months of service which would take place from October of 2017 through February of 2018. The following accounts were affected as a result of the transaction in May

unearned revenue