Chapter 1: Quiz
(a) Buildings...............................Assets (b) Common Stock.................Equity (c) Computer Equipment.....Assets (d) Note Payable.....................Liabilities (e) Wages Payable..................Liabilities (f) Land.........................................Assets
Identify each of the following items as assets, liabilities, or equity from the drop down provided. (a) Buildings (b) Common Stock (c) Computer Equipment (d) Note Payable (e) Wages Payable (f) Land
(a) Acct Receivable.....Assets (b) Wages Payable.......Liabilities (c) Supplies.....................Assets (d) Common Stock......Equity (e) Note Payable...........Liabilities (f) Land..............................Assets
Identify each of the following items as assets, liabilities, or equity from the drop down provided. (a) Acct Receivable (b) Wages Payable (c) Supplies (d) Common Stock (e) Note Payable (f) Land
(a) $63000 +$0 +$0 +$36000 +$0 =$0 +$99000 -$0 +$0 -$0 (b) ($44000) +$0 +$0 +$0 +$44000 =$0 +$0 -$0 +$0 -$0 (c) ($5300) +$0 +$0 +$5300 +$0 =$0 +$0 -$0 +$0 -$0 (d) $0 +$0 +$3500 +$1300 +$0 =$0 +$0 -$0 +$0 -$0 (e) ($910) +$0 +$0 +$0 +$0 =$4800 +$0 -$0 +$0 -$0 (f) $0 +$4500 +$0 +$0 +$0 =$0 +$0 -$0 +$0 -$910 (g) $8400 +$0 +$0 +$0 +$0 =$0 +$0 -$4500 -$0 (h) ($1800) +$0 +$0 +$0 +$0 =$0 +$0 -$0 +$8400 -$0 (i) $3500 +($3500) +$0 +$0 +$0 +$0 =$0 +$0 -$1800 +$0 -$0 (j) ($650) +$0 +$0 +$0 +$0 =$650 +$0 -$0 +$0 -$0 (k) ($2000) +$0 +$0 +$0 +$0 =$0 +$0 -$0 +$0 -$2000 Balance: $20240 +$1000 +$3500 +$42600 +$44000 =$4150 +$9900 -$1800 +$12900 -$2910 Net Income: $9990
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. (a) Lita Lopez invested $63000 cash and office equipment valued at $36000 in the company. (b) The company purchased an office suite for $44000 cash. (c) The company purchased office equipment for $5300 cash. (d) The company purchased $3500 of office supplies and $1,300 of office equipment on credit. (e) The company paid a local newspaper $910 cash for printing an announcement of the office's opening. (f) The company completed a financial plan for a client and billed that client $4500 for the service. (g) The company designed a financial plan for another client and immediately collected a $8400 cash fee. (h) Lita Lopez withdrew $1800 cash from the company for personal use. (i) The company received $3500 cash as partial payment from the client described in transaction f. (j) The company made a partial payment of $650 cash on the equipment purchased in transaction d. (k) The company paid $2000 cash for the office secretary's wages for this period.
(a) $65,000 +$0 +$0 +$36,000 +$0 =$0 +$101,000 -$0 +$0 -$0 (b) ($48,000) +$0 +$0 +$0 +$48,000 =$0 +$0 -$0 +$0 -$0 (c) ($5,000) + $0 + $0 + $5,000 + $0 =$0 +$0 -$0 +$0 -$0 (d) $0 + $0 + $3,700 + $1,900 + $0 =$5,600 +$0 -$0 +$0 -$0 (e) ($870) + $0 + $0 + $0 + $0 =$0 +$0 -$0 +$0 -$870 (f) $0 + $5,000 + $0 + $0 + $0 =$0 +$0 -$0 +$5,000 -$0 (g) $8,300 + $0 + $0 + $0 + $0 =$0 +$0 -$0 +$8,300 -$0 (h) ($1,400) + $0 + $0 +$0 + $0 =$0 +$0 -$1,400 +$0 -$0 (i) $4,000 + ($4,000) + $0 + $0 + $0 =$0 +$0 -$0 +$0 -$0 (j) ($950) + $0 + $0 + $0 + $0 = ($950) +$0 -$0 +$0 -$0 (k) ($1,600) + $0 + $0 + $0 + $0 = $0 +$0 -$0 +$0 -$1,600 Balance: $19,480 +$1,000 +$3,700 +$42,900 +$48,00 =$4650 +$101,000 -$1,400 +$13,300 - $2,470 Net Income: $10,830
Lita Lopez started Biz Consulting, a new business, and completed the following transactions during its first year of operations. (a) Lita Lopez invested $65,000 cash and office equipment valued at $36,000 in the company. (b) The company purchased an office suite for $48,000 cash. (c) The company purchased office equipment for $5,000 cash. (d) The company purchased $3,700 of office supplies and $1,900 of office equipment on credit. (e) The company paid a local newspaper $870 cash for printing an announcement of the office's opening. (f) The company completed a financial plan for a client and billed that client $5,000 for the service. (g) The company designed a financial plan for another client and immediately collected a $8,300 cash fee. (h) Lita Lopez withdrew $1,400 cash from the company for personal use. (i) The company received $4,000 cash a partial payment form the client described in transaction f. (j) The company made a partial payment of $950 cash on the equipment purchased in transaction d. (k) The company paid $1,600 cash for the office secretary's wages for this period. Assets (Cash + AcctReceivable + OfficeSupplies + OfficeEquipment + OfficeSuite) = Liabilities (AcctsPayable) + Equity (L.Lopez,Capital - L.Lopez,Withdrawals + Revenues - Expenses)
ERNST CONSULTING Balance Sheet As of October 31 Assets .....Cash................................$15,760 .....Office Supplies..........$1,960 .....Office Equipment.....$16,580 .....Land................................$46,030 .....Acct Receivable........$12,590 .....Total Assets..................................$92,920 Liabilities .....Acct Payable...............$7,250 Equity .....Ernst, Capital..............$85,670 Total Liabilities & Equity...................$92,920
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,780 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use the information to prepare an October 31 balance sheet for Ernst Consulting. Cash..............................................$15,760 Accts Receivable....................$12,590 Office Supplies........................$1,960 Land...............................................$46,030 Office Equipment....................$16,580 Accts Payable............................$7,250 Owner Investments.................$82,780 Owner Cash Withdrawals.....$640 Consulting Revenue................$12,590 Rent Expense..............................$2,270 Salaries Expense.......................$5,450 Telephone Expense.................$760 Misc. Expenses...........................$580
ERNST CONSULTING Income Statement For Month Ended October 31 Revenues .....Consulting Revenues................$12,590 .....Total Revenues............................................$12,590 Expenses .....Rent Expense................................$2,270 .....Salaries Expense.........................$5,450 .....Telephone Expense...................$760 .....Misc. Expense...............................$580 .....Total Expenses.............................................$9,060 Net Income........................................................$3,530
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,780 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use the information to prepare an October income statement for the business. Cash..............................................$15,760 Accts Receivable....................$12,590 Office Supplies........................$1,960 Land...............................................$46,030 Office Equipment....................$16,580 Accts Payable............................$7,250 Owner Investments.................$82,780 Owner Cash Withdrawals.....$640 Consulting Revenue................$12,590 Rent Expense..............................$2,270 Salaries Expense.......................$5,450 Telephone Expense.................$760 Misc. Expenses...........................$580
ERNST CONSULTING Statement of Owner's Equity For Month Ended October 31 Ernst, Capital, Oct. 1....................$0 Add: Owner's Investment.........$82,780 Add: Net Income..........................$3,530 -----------------------------------------$86,310 Less: Withdrawals by Owner...$640 Ernst, Capital, Oct. 31.................$85,670
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $82,780 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use the information to prepare an October statement of owner's equity for Ernst Consulting. Cash..............................................$15,760 Accts Receivable....................$12,590 Office Supplies........................$1,960 Land...............................................$46,030 Office Equipment....................$16,580 Accts Payable............................$7,250 Owner Investments.................$82,780 Owner Cash Withdrawals.....$640 Consulting Revenue................$12,590 Rent Expense..............................$2,270 Salaries Expense.......................$5,450 Telephone Expense.................$760 Misc. Expenses...........................$580
ERNST CONSULTING Balance Sheet As of October 31 Assets .....Cash................................$6650 .....Office Supplies..........$4640 .....Office Equipment.....$19560 .....Land................................$46000 .....Acct Receivable........$15520 .....Total Assets...................................$92370 Liabilities .....Acct Payable...............$9890 Equity .....Ernst, Capital...............$82480 Total Liabilities and equity.......$92370
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,460 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use the information to prepare an October 31 balance sheet for Ernst Consulting. Cash...........................................$6650 Acct Receivable...................$15520 Office Supplies.....................$4640 Land...........................................$46000 Office Equipment................$19560 Acct Payable..........................$9890 Owner Investments.............$85460 Owner Cash Withdrawals.$3490 Consulting Revenue............$15520 Rent Expense..........................$4920 Salaries Expense...................$8500 Telephone Expense.............$890 Misc. Expense.........................$700
ERNST CONSULTING Income Statement For Month Ended October 31 Revenues .....Consulting Revenues.............$15520 .....Total Revenues........................................$15520 Expenses .....Rent Expense.............................$4920 .....Salaries Expense......................$8500 .....Telephone Expense................$890 .....Misc. Expense............................$700 .....Total Expenses........................................$15010 Net Income....................................................$510
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,460 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use the information to prepare an October income statement for the business. Cash...........................................$6650 Acct Receivable...................$15520 Office Supplies.....................$4640 Land...........................................$46000 Office Equipment................$19560 Acct Payable..........................$9890 Owner Investments.............$85460 Owner Cash Withdrawals.$3490 Consulting Revenue............$15520 Rent Expense..........................$4920 Salaries Expense...................$8500 Telephone Expense.............$890 Misc. Expense.........................$700
ERNST CONSULTING Statement of Owner's Equity For Month Ended October 31 Ernst, Capital, Oct. 1....................$0 Add: Owner's Investment.........$85460 Add: Net Income..........................$510 ------------------------------------------$85970 Less: Withdrawals by Owner....$3490 Ernst, Capital, Oct. 31...................$82480
On October 1, Ebony Ernst organized Ernst Consulting; on October 3, the owner contributed $85,460 in assets to launch the business. On October 31, the company's records show the following items and amounts. Use the information to prepare an October statement of owner's equity for Ernst Consulting. Cash...........................................$6650 Acct Receivable...................$15520 Office Supplies.....................$4640 Land...........................................$46000 Office Equipment................$19560 Acct Payable..........................$9890 Owner Investments.............$85460 Owner Cash Withdrawals.$3490 Consulting Revenue............$15520 Rent Expense..........................$4920 Salaries Expense...................$8500 Telephone Expense.............$890 Misc. Expense.........................$700
