Chapter 1 - Introduction To Accounting and Business

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{\colortbl;\red0\green0\blue0;\red255\green255\blue255;\red0\green0\blue0;\red128\g
reen128\blue128;\red255\green0\blue0;}{\f\title Chapter 1--Introduction to
Accounting and
Business}\paperw12240\paperh15840\margb720\margl720\margr720\margt720\htmautsp\sect
d\pgnstarts1\pgnrestart\pard\plain\sa532\li0\ri0\sb532\ql\plain\cf3\f4\fs40\b1{{Cha
pter 1--Introduction to Accounting and
Business}}\par\pard\plain\sa319\li0\ri0\sb319\ql\plain\cf3\f4\i\fs24\b0{{Student:
___________________________________________________________________________}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1.}{\~}{The main
objective of a not-for-profit business
is }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{not
}}}}\plain\cf3\f4\fs24\b0{{ to make a
profit.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
{False}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{2.}{\~}{ An example
of an external user of accounting information is the federal
government.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{3.}{\~}{A
corporation is a business that is legally separate and distinct from its
owners.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{4.}{\~}{About 90% of
the businesses in the United States are organized as
corporations.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\
b0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{5.}{\~}{The role of
accounting is to provide many different users with financial information to make
economic
decisions.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{6.}{\~}
{Proprietorships are owned by one owner and provide only services to their
customers.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{7.}{\~}{Only large
companies such as Wal-Mart, JCP, General Motors, and the Bank of America can be
organized as
b0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{8.}{\~}{Accounting
information users need reports about the economic activities and condition of
businesses.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{9.}{\~}{Senior
executives cannot be criminally prosecuted for the wrong doings they commit on
behalf of the companies where they
work.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{10.}{\~}{The primary
role of accounting is to determine the amount of taxes a business will be required
to pay to taxing
entities.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{11.}{\~}{An account
receivable is typically classified as a
revenue.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{12.}{\~}{Managerial
accounting information is used by external and internal users
equally.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{13.}{\~}{Financial
accounting provides information to all users, while the main focus for managerial
accounting is to provide information to the
management.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{14.}{\~}{Proper
ethical conduct implies that you only consider what's in your best
interest.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{15.}{\~}{Some of the
major fraudulent acts by senior executives started as what they considered to be
small ethical lapses which grew out of
control.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{16.}{\~}{Two factors
that typically lead to ethical violations are relevance and timeliness of
accounting
information.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{17.}{\~}{A business
is an organization in where basic resources or inputs, like materials and labor,
are assembled and processed to provide outputs in the form of goods or services to
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{18.}{\~}{The
Financial Accounting Standards Board (FASB) is the authoritative body that has
primary responsibility for developing accounting
principles.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{19.}{\~}{The cost
concept is the basis for entering the exchange price into the accounting
records.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{20.}{\~}{The unit of
measurement concept requires that economic data be recorded in a common unit of
measurement.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{21.}{\~}{If a
building is appraised for $85,000, offered for sale at $90,000, and the buyer pays
$80,000 cash for it, the buyer would record the building at
$85,000.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{22.}{\~}{Generally
accepted accounting principles regulate how and what financial information is
reported by
accounting equation can be expressed as Assets - Liabilities = Owner's
Equity.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{24.}{\~}{The rights
or claims to the assets of a business may be subdivided into rights of creditors
and rights of
e{}}\plain\cf3\f4\fs24\b0
{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{25.}{\~}{The owner}
{{\u8217}}{s rights to the assets rank ahead of the creditors' rights to the
assets.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{26.}{\~}{If the
liabilities owed by a business total $300,000 and owners equity is equal to
$300,000, then the assets also total
$300,000.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{27.}{\~}{If total
assets decreased by $30,000 during a specific period and owner's equity decreased
by $35,000 during the same period, the period's change in total liabilities was an
$65,000
increase.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{28.}{\~}{If total
assets increased by $190,000 during a specific period and liabilities decreased by
$10,000 during the same period, the period's change in total owner's equity was a
$200,000
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{29.}{\~}{If net
income for a proprietorship was $50,000, the owner withdrew $20,000 in cash and the
owner invested $10,000 in cash, the capital of the owner increased by
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{30.}{\~}{An account
receivable is a claim against a customer arising from a sale on
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{31.}{\~}{Paying an
account payable increases liabilities and decreases
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{32.}{\~}{ Receiving
payments on an account receivable increases both equity and
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{33.}{\~}{Cash
withdrawals by owners decrease assets and increase
equity.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{34.}{\~}{Purchasing
supplies on account increases liabilities and decreases
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{35.}{\~}{Receiving a
bill or otherwise being notified that an amount is owed
}}}}\plain\cf3\f4\fs24\b0{{ recorded until the amount is
paid.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{36.}{\~}{Revenue is
earned only when money is
received.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{37.}{\~}{Expenses
are assets that are used up during the process of earning
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{38.}{\~}{The excess
of revenue over the expenses incurred in earning the revenue is called
capital.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
principal financial statements of a proprietorship are the income statement,
statement of owner's equity, and the balance
sheet.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{{True}{\~}{\~}{\~}{\~}
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{40.}{\~}{An income
statement is a summary of the revenues and expenses of a business as of a specific
date.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{41.}{\~}{A statement
of owner's equity reports the changes in the owner's equity for a period of
time.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
statement of cash flows consists of three sections: cash flows from operating
activities, cash flows from income activities, and cash flows from equity
activities.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
financial statements of a proprietorship should include the owner's personal assets
and
liabilities.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{44.}{\~}{The balance
sheet represents the accounting
equation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{45.}{\~}{An example
of a general-purpose financial statement would be a report about projected price
increases related to transportation
costs.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{46.}{\~}{No
significant differences exist between the accounting standards issued by the FASB
and the
IASB.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
Sarbanes-Oxley Act prohibits CPAs from providing nonaudit investment banking
services.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{48.}{\~}{The main
objective for all business is to maximize unrealized
profits.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{49.}{\~}{The basic
difference between manufacturing and merchandising companies is the completion
level of the products they purchase for resale to
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{50.}{\~}{Net
income and net profit
do }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{not
}}}}\plain\cf3\f4\fs24\b0{{ mean the same
thing.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{51.}{\~}{Profit is
the difference
between}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets and
liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{B.}{\~}{the incoming cash and outgoing
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{the assets purchased with cash contributed by the owner and the cash spent to
operate the
business}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{the amounts received from customers for goods or services and the amounts
paid for}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{the inputs used to
provide the goods or
services.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs
24\b0{{52.}{\~}{Most businesses in the United States
are}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{proprietorships}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\
fs24\b0{{B.}{\~}
{partnerships}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs2
4\b0{{C.}{\~}
{corporations}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs2
4\b0{{D.}{\~}{co-
operatives}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
f3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\f
s24\b0{{53.}{\~}{Which of the items below
}}}\plain\cf3\f4\i\fs24\b1{\plain\cf3\f4\i\fs24\b1{{ }}}}\plain\cf3\f4\fs24\b0{{a
business
entity?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{entrepreneurship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4
\fs24\b0{{B.}{\~}
{proprietorship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\f
s24\b0{{C.}{\~}
{partnership}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{D.}{\~}
{corporation}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4
\fs24\b0{{54.}{\~}{An entity that is organized according to state or federal
statutes and in which ownership is divided into shares of stock is
a}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\p
lain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
s24\b0{{B.}{\~}
{corporation}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{C.}{\~}
\b0{{D.}{\~}{governmental
unit}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0
{{55.}{\~}{Financial reports are used
by}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{management}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{B.}{\~}
{creditors}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{C.}{\~}
{investors}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{all are
correct}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24
\b0{{56.}{\~}{Which of the
following }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\
b1{{best}}}}\plain\cf3\f4\fs24\b0{{ describes
accounting?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{records economic data
but does not communicate the data to users according to any specific
rules.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{is an information system that provides reports to users regarding economic
activities and condition of a
business.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{is of no use by individuals outside of the
{{D.}{\~}{is used only for filling out tax returns and for financial statements for
various type of governmental reporting
requirements.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plai
n\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f
4\fs24\b0{{57.}{\~}{Two common areas of accounting that respectively provide
information to internal and external users
are:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{forensic accounting and
financial
accounting}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{managerial accounting and financial
0{{C.}{\~}{managerial accounting and environmental
0{{D.}{\~}{financial accounting and tax accounting
systems}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{58.}{\~}{Which type of accountant typically practices as an individual or as a
member of a public accounting
firm?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Certified Public
Accountant}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{Certified Payroll
Professional}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{C.}{\~}{Certified Internal
Auditor}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{Certified Management
Accountant}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{59.}{\~}{All of the following are general-purpose financial
statements }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24
\b1{{except}}}}\plain\cf3\f4\fs24\b0{{: }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A
.}{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{income
statement}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{statement of owner}{{\u8217}}{s
equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{cash
budget}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\
b0{{60.}{\~}{Which of the following is a manufacturing
business?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{Amazon.com.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{B.}{\~}{Wal-
Mart.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Ford
Motors.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{Delta
Airlines}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs2
4\b0{{61.}{\~}{Which of the following group of companies are all examples of a
merchandising
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Delta Airlines,
Marriott,
Gap}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{Gap, Amazon,
NIKE}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{GameStop, Sony,
Dell}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{GameStop, Best Buy,
Gap}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
s18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{
{62.}{\~}{Which of the following
would }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{
not}}}}\plain\cf3\f4\fs24\b0{{ normally operate as a service
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Pet
Groomers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}
{Grocers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{Lawn Care
Company}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{Styling
Salon}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b
0{{63.}{\~}{Select
the type of business that is most likely to obtain large amounts of resources by
issuing
stock.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{Partnership}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{B.}{\~}
{Corporation}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{C.}{\~}
{Proprietorship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\f
s24\b0{{D.}{\~}{None are
correct.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{64.}{\~}{Which of the following
is }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{tru
e}}}}\plain\cf3\f4\fs24\b0{{ in regards to a Limited Liability
Company?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Makes up 10% of business
organizations in the United
States.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Combines the attributes of a partnership and a
corporation.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{C.}{\~}{Provides tax and liability advantages to the
owners.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{All are
4\b0{{65.}{\~}{On April 25, Gregg Repair Service extended an offer of $115,000 for
land that had been priced for sale at $140,000. On May 3, Gregg Repair Service
accepted the seller}{{\u8217}}{s counteroffer of $125,000. On June 20, the land was
assessed at a value of $95,000 for property tax purposes. On August 4, Gregg Repair
Service was offered $150,000 for the land by a national retail chain. At what value
should the land be recorded in Gregg Repair Service}{{\u8217}}{s
records?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{$115,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}
{$95,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}
{{D.}{\~}
{$125,000}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{66.}{\~}{Which of the following groups are considered to
be }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{int
ernal
users}}}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{ }}}\plain\cf3\f4\fs24\b0
{{of accounting
information?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Employees and
customers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Customers and
vendors}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{Employees and
managers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{Government and
banks}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{67.}{\~}{The following are examples of external users of accounting
information }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs2
4\b1{{except}}}}\plain\cf3\f4\fs24\b0{{:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A
.}{\~}
{government}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{B.}{\~}
{customers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{C.}{\~}
0{{D.}{\~}{all of the
above}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{68.}{\~}{Due to various fraudulent business practices and accounting coverups in
the early 2000}{{\u8217}}{s, Congress enacted the Sarbanes-Oxley Act of 2002.}{\~}{
The Act was responsible for establishing a new oversight board for public
accountants called
the}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Generally Accepted Accounting
Practices for Public Accountants
Board.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{Public Company Accounting Oversight
Board.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{Congressional Accounting Oversight
Board.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{None are
4\b0{{69.}{\~}{Which of the following is
the }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{be
st}}}}\plain\cf3\f4\fs24\b0{{ description of accounting}{{\u8217}}{s role in
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Accounting provides
stockholders with information regarding the market value of the company}{{\u8217}}
{s
stocks.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Accounting provides information to managers to operate the business and to
other users to make decisions regarding the economic condition of the
company.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{Accounting helps in decreasing the credit risk of the
{D.}{\~}{Accounting is not responsible for providing any form of information to
users.}{\~}{ That is the role of the Information Systems
Department.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\
fs24\b0{{70.}{\~}{Managerial accountants would be responsible for providing the
following
information:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Tax reports to
government
agencies.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Profit reports to owners and
management.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{C.}{\~}{Expansion of a product line report to
b0{{D.}{\~}{Consumer reports to
customers.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{71.}{\~}{Which of the following
}}}\plain\cf3\f4\fs24\b1{{ }}}\plain\cf3\f4\fs24\b0{{a certification for
accountants?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{CIA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}
{CMA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}
{CISA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{All are
certifications.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\pl
ain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3
\f4\fs24\b0{{72.}{\~}{Which of the following
is}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{not}
}}}\plain\cf3\f4\fs24\b0{{ a characteristic of a
corporation?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Corporations are
organized as a separate legal taxable
entity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{Ownership is divided into shares of
stock.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{Corporations experience an ease in obtaining large amounts of resources by
issuing
stock.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{A corporation}{{\u8217}}{s resources are limited to their individual owners}
{{\u8217}}
{ resources.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{73.}{\~}{Which of the following
}}}}\plain\cf3\f4\fs24\b0{{ a role of accounting in
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{To provide reports to
users about the economic activities and conditions of a
{{B.}{\~}{To personally guarantee loans of the
{{C.}{\~}{To provide information to other users to determine the economic
performance and condition of the
{{D.}{\~}{To
assess the various informational needs of users and design its accounting system
to meet those
needs.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{74.}{\~}{Which of the following are guidelines for behaving
ethically?}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
paddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449
\clvertalt\cellx1408\clvertalt\cellx10331\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{I.}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Identify the consequences of a
decision and its effect on
others.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
dl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\ce
llx1408\clvertalt\cellx10331\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvert
alt\cellx1408\clvertalt\cellx10331\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{II.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Consider your obligations and
responsibilities to those affected by the
decision.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
addl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\
cellx1408\clvertalt\cellx10331\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clve
rtalt\cellx1408\clvertalt\cellx10331\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{III.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Identify your decision based on
personal standards of honesty and
fairness.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
rtalt\cellx1408\clvertalt\cellx10331\pard\plain\intbl\itap1\cell\pard\plain\intbl\i
tap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
ddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\c
lvertalt\cellx1408\clvertalt\cellx10331\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\pla
in\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{I and
II.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{II and
III.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{I and
III.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{I, II, and
III.}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{75.}{\~}{The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their
clients for what period after their last audit of the
client?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{Indefinitely}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs2
4\b0{{B.}{\~}{One
year}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{Two
years}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{There is no such
prohibition.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{76.}{\~}{The initials GAAP stand
for}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{General Accounting
Procedures}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{Generally Accepted
Plans}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Generally Accepted Accounting
Principles}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{Generally Accepted Accounting
Practices}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{77.}{\~}{Within the United States, the dominant body in the primary
development of accounting principles is
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{American Institute of
Certified Public Accountants
(AICPA)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{American Accounting Association
(AAA)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Financial Accounting Standards Board
(FASB)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{Institute of Management Accountants
(IMA)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{78.}{\~}{The business entity concept means
that}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{the owner is part of the
business
.}{\~}{an entity is organized according to state or federal
statutes}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{an entity is organized according to the rules set by the
FASB}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{the entity is an individual economic unit for which data are recorded,
analyzed, and
reported}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{79.}{\~}{For accounting purposes, the business entity should be considered
separate from its owners if the entity
is}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{a
corporation}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{B.}{\~}{a
proprietorship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs
24\b0{{C.}{\~}{a
partnership}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{D.}{\~}{all of the
0{{80.}{\~}{The objectivity concept requires
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{business transactions must be
consistent with the objectives of the
.}{\~}{the Financial Accounting Standards Board must be fair and unbiased in its
deliberations over new accounting
standards}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{accounting principles must meet the objectives of the Security and
Exchange
Commission}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{amounts recorded in the financial statements must be based on
independently verifiable
evidence}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{81.}{\~}{Denzel Jones owns and operates Crystal Cleaning Company.}{\~}
{ Recently, Denzel withdrew $10,000 from Crystal Cleaning, and he contributed
$6,000, in his name, to Habitat for Humanity.}{\~}{ The contribution of the $6,000
should be recorded on the accounting records of which of the following
entities?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Crystal Cleaning and
Habitat for
Humanity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{Denzel Jones' personal records and Habitat for
{C.}{\~}{Denzel Jones}{{\u8217}}{ personal records and Crystal
Cleaning}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{Denzel Jones}{{\u8217}}{ personal records, Crystal Cleaning, and Habitat
for
Humanity}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{82.}{\~}{Equipment with an estimated market value of $30,000 is offered for
sale at $45,000. The equipment is acquired for $15,000 in cash and a note payable
of $20,000 due in 30 days. The amount used in the buyer's accounting records to
record this acquisition
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{B.}{\~}{$35,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4
\fs24\b0{{C.}{\~}
{D.}{\~}
{$45,000}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{83.}{\~}{Which one of the following is the authoritative body in the United
States having the primary responsibility for developing accounting
principles?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{FASB}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}
{IRS}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}
{SEC}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}
{AICPA}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{84.}{\~}{Which of the following concepts relates to separating the reporting of
business and personal economic
transactions? }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24
\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Cost
Concept}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Unit of Measure
C.}{\~}{Business Entity
D.}{\~}{Objectivity
Concept}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{85.}{\~}{Donner Company is selling a piece of land adjacent to their business
premises.}{\~}{ An appraisal reported the market value of the land to be $220,000.}
{\~}{ The Focus Company initially offered to buy the land for $177,000.}{\~}{ The
companies settled on a purchase price of $212,000.}{\~}{ On the same day, another
piece of land on the same block sold for $232,000.}{\~}{ Under the cost concept, at
what amount should the land be recorded in the accounting records of Focus
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{{B.}{\~}
{{C.}{\~}
{{D.}{\~}
}}}}\plain\cf3\f4\fs24\b0{{ true of accounting
\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Financial accountants
follow generally accepted accounting principles
(GAAP).}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{Following GAAP allows accounting information users to compare one company
to
another.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{A new accounting principle can be adopted with stockholders
approval.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}{The Financial Accounting Standards Board (FASB) has primary
responsibility for developing accounting
principles.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{87.}{\~}{Assets
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{always lower than
b0{{B.}{\~}{equal to liabilities less owner}{{\u8217}}{s
equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{the same as expenses because they are acquired with
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{financed by the owner and/or
creditors}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{88.}{\~}{Debts owed by a business are referred to
as}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{accounts
receivables}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{B.}{\~}
{expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{owner}{{\u8217}}{s
equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}
{liabilities}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{89.}{\~}{The accounting equation may be expressed
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Assets = Equities -
Liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{B.}{\~}{Assets + Liabilities = Owner's
Equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{Assets = Revenues less
b0{{D.}{\~}{Assets - Liabilities = Owner's
Equity}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{90.}{\~}{Which of the following
}}}}\plain\cf3\f4\fs24\b0{{ an
asset?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{Investments}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{B.}{\~}
{Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}
{Inventory}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{Owner}{{\u8217}}{s
b0{{91.}{\~}{The assets and liabilities of the company are $128,000 and $84,000,
respectively.}{\~}{ Owner}{{\u8217}}{s equity should
equal}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{{B.}{\~}
{C.}{\~}
{{D.}{\~}
4\b0{{92.}{\~}{If total liabilities decreased by $46,000 during a period of time
and owner's equity increased by $60,000 during the same period, the amount and
direction (increase or decrease) of the period's change in total assets
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{$106,000
increase}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{$14,000
{C.}{\~}{$14,000
decrease}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}{$106,000
decrease}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
}}}}\plain\cf3\f4\fs24\b0{{ a business
transaction?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{make a sales
offer}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{sell goods for
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{receive cash for services to be rendered
later}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{pay for
supplies}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{94.}{\~}{A business paid $7,000 to a creditor in payment of an amount owed.
The effect of the transaction on the accounting equation was
to}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{increase one asset, decrease
another
asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.
}{\~}{decrease an asset, decrease a
liability}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{increase an asset, increase a
{{D.}{\~}{increase an asset, increase owner's
equity}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs2
4\b0{{95.}{\~}{Earning
revenue}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{increases assets,
increases owner}{{\u8217}}{s
equity.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{increases assets, decreases owner's
.}{\~}{increases one asset, decreases another
asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{decreases assets, increases
liabilities}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{96.}{\~}{The monetary value charged to customers for the performance of
services sold is called
a(n)}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{net
income}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}
{capital}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}
{revenue}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{97.}{\~}{Revenues are reported
when}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{a contract is
signed}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{cash is received from the
customer}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{work is begun on the
job}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{work is completed on the
job}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{98.}{\~}{Expenses are recorded
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{cash is paid for services
rendered}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{a bill is received in advance of services
{C.}{\~}{assets are used in the process of earning
revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{none of
these}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{99.}{\~}{Goods purchased on account for future use in the business, such as
supplies, are
called}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{prepaid
b0{{B.}{\~}
{revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{C.}{\~}{prepaid
expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{D.}{\~}
\fs24\b0{{100.}{\~}{The asset created by a business when it makes a sale on account
is
termed}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{accounts
payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{prepaid
expense}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
C.}{\~}{unearned
revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
D.}{\~}{accounts
receivable}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{101.}{\~}{The debt created by a business when it makes a purchase on
account is referred to as
an}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{account
payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{account
receivable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{C.}{\~}
{asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{expense
payable}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{102.}{\~}{If total assets decreased by $88,000 during a period of time and
owner's equity increased by $71,000 during the same period, then the amount and
direction (increase or decrease) of the period's change in total liabilities
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{$17,000
{B.}{\~}{$88,000
{C.}{\~}{$159,000
{D.}{\~}{$159,000
4\b0{{103.}{\~}{Owner's
withdrawals}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{increase
{B.}{\~}{decrease
{C.}{\~}{increase
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{decrease owner's
b0{{104.}{\~}{How does paying a liability in cash affect the accounting
equation?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets increase;
liabilities
{B.}{\~}{assets increase; liabilities
{C.}{\~}{assets decrease; liabilities
{D.}{\~}{liabilities decrease; owner's equity
increases}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{105.}{\~}{How does receiving a bill to be paid next month for services
received affect the accounting
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets decrease; owner's
equity
decreases }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{assets increase; liabilities
{C.}{\~}{liabilities increase; owner's equity
increases}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{D.}{\~}{liabilities increase; owner's equity
decreases}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{106.}{\~}{How does the purchase of equipment by signing a note affect the
accounting
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets increase; assets
{B.}{\~}{assets increase; liabilities
{C.}{\~}{assets increase; liabilities
{D.}{\~}{assets increase; owner's equity
24\b0{{107.}{\~}{Land, originally purchased for $30,000, is sold for $62,000 in
cash. What is the effect of the sale on the accounting
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{assets increase $62,000;
owner's equity increases
$62,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{assets increase $32,000; owner's equity increases
C.}{\~}{assets increase $62,000; liabilities decrease $30,000; owner's equity
increases
D.}{\~}{assets increase $30,000; no change for liabilities; owner's equity
increases
$62,000}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{108.}{\~}{Allen Marks is the sole owner and operator of Great Marks Company.}
{\~}{
As of the end of its accounting period, December 31, 2013, Great Marks Company has
assets of $940,000 and liabilities of $300,000.}{\~}{ During 2014, Allen Marks
invested an additional $73,000 and withdrew $33,000 from the business. What is the
amount of net income during 2014, assuming that as of December 31, 2014, assets
were $995,000, and liabilities were
$270,000?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{$
45,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{$
50,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}
{{D.}{\~}
24\b0{{109.}{\~}{Transactions affecting owner's equity
include}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{owner's investments and
payment of
b0{{B.}{\~}{owner's investments and owner's withdrawals, revenues, and
{C.}{\~}{owner's investments, revenues, expenses, and collection of accounts
0{{D.}{\~}{owner's withdrawals, revenues, expenses, and purchase of supplies on
account}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{110.}{\~}{Clifford Moore is starting his computer programming business and has
deposited in initial investment of $15,000 into the business cash account.}{\~}
{ Identify how the accounting equation will be
affected.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Increase Assets (Cash)
and increase Liabilities (Accounts
Payable)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{B.}{\~}{Increase Assets (Cash) and increase Owner}{{\u8217}}{s Equity (Clifford
Moore,
Capital)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{Increase Assets (Accounts Receivable) and decrease Liabilities (Accounts
{D.}{\~}{Increase Assets (Cash) and increase Assets (Accounts
Receivable)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{111.}{\~}{Gomez Service Company paid their first installment on their
Notes Payable in the amount of $2,000.}{\~}{ How will this transaction affect the
accounting
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Increase Liabilities
(Notes Payable) and decrease Assets
(Cash)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{Decrease Assets (Cash) and decrease Owner}{{\u8217}}{s equity (Note Payable
Expense)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{Decrease Assets (Cash) and decrease Assets (Notes
Receivable)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{D.}{\~}{Decrease Assets (Cash) and decrease Liabilities (Notes
Payable)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{112.}{\~}{Ramon Ramos has withdrawn $750 from Ramos Repair Company}{{\u8217}}
{s cash account to deposit in his personal account.}{\~}{ How does this transaction
affect Ramos Repair Company}{{\u8217}}{s accounting
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Increase Assets
(Accounts Receivable) and decrease Assets
(Cash)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{Decrease Assets (Cash) and decrease Owner}{{\u8217}}{s Equity (Owner}
{{\u8217}}{s
Withdrawal)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{C.}{\~}{Decrease Assets (Cash) and decrease Liabilities (Accounts
{D.}{\~}{Increase Assets (Cash) and decrease Owner}{{\u8217}}{s Equity (Owner}
{{\u8217}}{s
Withdrawal)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{113.}{\~}{Which of the following
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Erin deposits $15,000
in a bank account in the name of Erin}{{\u8217}}{s Lawn
Service. }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Erin provided services to customers earning fees of
$600.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Erin purchased hedge trimmers for her lawn service agreeing to pay the
supplier next
month.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{Erin pays her monthly personal credit card
bill.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{114.}{\~}{The financial statement that presents a summary of the revenues and
expenses of a business for a specific period of time, such as a month or year, is
called
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{prior period
{{B.}{\~}{statement of owner's
.}{\~}{income
{{D.}{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{115.}{\~}{Which of the following financial statements reports information as of
a specific
date?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{income
.}{\~}{statement of cash
flows}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{balance
0{{116.}{\~}{Four financial statements are usually prepared for a business.}{\~}
{ The statement of cash flows is usually prepared last.}{\~}{ The statement of
owner's equity (OE), the balance sheet (B), and the income statement (I) are
prepared in a certain order to obtain information needed for the next statement.}
{\~}{ In what order are these three statements
prepared?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{I,OE,
B}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B.}
{\~}{B, I,
OE}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}{OE, I,
B}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.}
{\~}{B,OE,
I}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs1
8\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1
17.}{\~}{Liabilities are reported on
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{income
.}{\~}{statement of cash
flows}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{balance
0{{118.}{\~}{Cash investments made by the owner to the business are reported on the
statement of cash flows in
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{financing activities
section}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{
B.}{\~}{investing activities
C.}{\~}{operating activities
D.}{\~}{supplemental
statement}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{119.}{\~}{The year-end balance of
the owner's capital account appears
in}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{both the statement of owner's
equity and the income
{{B.}{\~}{only the statement of owner's
.}{\~}{both the statement of owner's equity and the balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{both the statement of owner's equity and the statement of cash
flows}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{120.}{\~}{A financial statement user would determine if a company was profitable
or not during a specific period of time by
reviewing}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{the Income
Statement.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{the Balance
Sheet.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C
.}{\~}{the Statement of Cash
Flows.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D
.}{\~}{cannot be
determined.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{121.}{\~}{If the owner wanted to know how money flowed into and out of the
company, what financial statement would she
use?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{Income
Statement}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{B.}{\~}{Statement of Cash
Flows}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.
}{\~}{Balance
Sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{None are
4\b0{{122.}{\~}{The asset section of the Balance Sheet normally presents assets
plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{alphabetical
order.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}{order of largest to smallest dollar
amounts.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{in the order what will be converted into
cash.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}{any
order.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{123.}{\~}{Countries outside the U.S. use financial accounting standards issued
by
the:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{AICPA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{B
.}{\~}
{SEC}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{C.}
{\~}
{IASB}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{D.
}{\~}
{FASB}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{124.}{\~}{All of the following statements regarding the ratio of liabilities to
owner}{{\u8217}}{s equity are
true }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{e
xcept}}}}\plain\cf3\f4\fs24\b0{{:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}
}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}
{A ratio of 1 indicates that liabilities equal owner}{{\u8217}}{s
B.}{\~}{Corporations can use this ratio but substitute total stockholders}
{{\u8217}}{ equity for total owner}{{\u8217}}{s
C.}{\~}{The higher this ratio is, the better able a business is to withstand poor
business conditions and pay
creditors.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{D.}{\~}{The lower this ratio is, the better able a business is to withstand poor
creditors.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{125.}{\~}{The unit of measure
concept: }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}{\~}{is only used in the
financial statements of manufacturing
companies.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b
0{{B.}{\~}{is not important when applying the cost
concept.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{
{C.}{\~}{requires that different units be used for assets and
liabilities.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{D.}{\~}{requires that economic data be reported in yen in Japan or dollars in
the
U.S. }}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{126.}{\~}{Given the following
data:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}
{ }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{Dec.
31,2014}}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\fs24\b1{{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ }}}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{Dec.
31,2013}}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\fs24\b1\line{}}\plain\cf3\f4\fs24\b0{
{Total liabilities}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $128,250}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ $120,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Total owner}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 95,000}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ 80,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{Compute the ratio of liabilities to owner}{{\u8217}}{s equity for each year.}
{\~}{ Round to two decimal
places.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\
~}}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{A.}
{\~}{1.50 and 1.07,
respectively}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24
\b0{{B.}{\~}{1.35 and 1.50,
\b0{{C.}{\~}{1.07 and 1.19,
\b0{{D.}{\~}{1.19 and 1.35,
respectively}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{127.}{\~}{Discuss internal and external users of accounting information.}
{\~}{ What areas of accounting provide them with information?}{\~}{ Give an example
of the type of report each type of user might
use.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par
\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\
fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\lin
e{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep
\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0
\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\
keep\keepn\ql\plain\cf3\f4\fs24\b0{{128.}{\~}{Companies like Enron, WorldCom, and
Tyco International, Ltd. have been caught in the midst of ethical lapses that led
to fines, firings, and criminal and/or civil prosecution. List and briefly describe
three factors that are responsible for what went wrong in these
companies.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{
}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\c
f3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\
b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\p
lain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb
0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\pla
in\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{129.}{\~}{List the five steps in the
process by which accounting provides information to
users.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f
4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\l
ine{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\ke
ep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\s
a0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\
sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{130.}{\~}{What is the major
difference between the objective of financial accounting and the objective of
managerial
{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\
cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22
\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\
plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\s
b0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\pl
ain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0
\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{131.}{\~}{Give the major disadvantage of
disregarding the cost concept and constantly revaluing assets based on appraisals
and
opinions.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf
3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b
0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pl
ain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0
\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plai
n\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\s
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{132.}{\~}{On May 7, Carpet Barn Company
offered to pay $83,000 for land that had a selling price of $105,000.}{\~}{ On May
15, Carpet Barn accepted a counteroffer of $95,000.}{\~}{ On June 5, the land was
assessed at a value of $115,000 for property tax purposes.}{\~}{ On December 10,
Carpet Barn Company was offered $135,000 for the land by another company.}{\~}{ At
what value should the land be recorded in Carpet Barn Company}{{\u8217}}{s
records?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3
\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0
\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pla
in\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\
keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain
\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{133.}{\~}{Donner Company is selling a piece
of land adjacent to their business.}{\~}{ An appraisal reported the market value of
the land to be $120,000.}{\~}{ The Focus Company initially offered to buy the land
for $107,000.}{\~}{ The companies settled on a purchase price of $115,000.}{\~}{ On
the same day, another piece of land on the same block sold for $122,000.}{\~}
{ Under the cost concept, what is the amount that will be used to record this
transaction in the accounting
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{134.}{\~}{Explain the meaning of the
business entity
concept.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{135.}{\~}{Darnell Company purchased $88,000
of computer equipment from Joseph Company.}{\~}{ Darnell Company paid for the
equipment using cash that had been obtained from the initial investment by Donnie
Darnell. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{Which entity or entities (Darnell Company, Joseph Company, Donnie Darnell)
should record the transaction involving the computer equipment on their accounting
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{136.}{\~}{Explain the meaning
of:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{
{(a) the}{\~}{ objectivity concept
and}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) the unit of measure
concept}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\
f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\
line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\k
eep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\
sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb3
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{137.}{\~}{Doug Miller is the owner and
operator of Miller}{{\u8217}}{s Arcade.}{\~}{ At the end of its accounting period,
December 31, 2010, Miller}{{\u8217}}{s Arcade has assets of $450,000 and
liabilities of $125,000.}{\~}{ Using the accounting equation, determine the
following
amounts:}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
lvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs
18\b0{{a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Owner}{{\u8217}}{s Equity as of December 31,
2010.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cell
x10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b)}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner}
{{\u8217}}{s Equity as of December 31, 2011, assuming that assets increased by
$65,000 and liabilities increased by $35,000 during
ain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
paddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt
\cellx755\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\
eep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\
plain\cf3\f4\fs24\b0{{138.}{\~}{Determine the missing amount }{{\u8220}}{X}
{{\u8221}}{ for each of the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbr
drt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrc
f0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw2
0\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpad
dfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw
20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3500\cl
vertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\b
rdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6898\clvertalt\clbrdrb\brdrs\brdr
w20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brd
rs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Assets}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner}{{\u8217}}{s
Equity}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
drw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\b
rdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\tr
paddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\
brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\c
lbrdrt\brdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbr
drl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrc
f0\cellx6898\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10296\row\trowd\tr
ql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw2
0\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs
\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdr
s\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx
3500\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6898\clvertalt\clbrdrb\brd
rs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbr
drt\brdrs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{a.}{\~}
{ $78,500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{$37,600}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{X}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20
\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\
brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0
\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trp
addft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrb\b
rdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cl
brdrt\brdrs\brdrw20\brdrcf0\cellx6898\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrd
rl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf
0\cellx10296\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brd
rcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdr
w20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brd
rw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\br
drs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs
\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6
898\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.}{\~}
{ X}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{$53,280}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{$145,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw2
0\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs
\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft
0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\tr
paddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrd
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrb\
f0\cellx10296\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\br
drcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brd
rw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\br
drw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\b
rdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdr
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}
cf3\f4\fs18\b0{{X}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
0\cellx10296\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\c
ellx3500\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cell
x6898\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\cel
l\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\
clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrl\brdrs\brdrw20\b
rdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6898\clvertalt\clbrdrl\brdrs\brdrw20\brdr
cf0\cellx10296\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\p
lain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\ke
a0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}
\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{139.}{\~}{Krammer Company has liabilities equal to one fourth of the total
assets.}{\~}{ Krammer}{{\u8217}}{s owner}{{\u8217}}{s equity is}{\~}{ $45,000.}{\~}
{ Using the accounting equation, what is the amount of liabilities for
Krammer?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{140.}{\~}{Daniels Company is owned and
operated by Thomas Daniels.}{\~}{ The following selected transactions were
completed by Daniels Company during
May:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\tr
rh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpadd
ft3\clvertalt\cellx634\clvertalt\cellx9975\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash from owner as additional
investment
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0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl
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brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddf
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drw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\b
rdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\
brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\c
ellx539\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrd
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx
drt\brdrs\brdrw20\brdrcf0\cellx8994\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl
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cellx10330\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3}
}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
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i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\it
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rw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx4348\
clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs
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l\plain\cf3\f4\fs18\b0{{4}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
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0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\i
ntbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b
0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
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cf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brd
w20\brdrcf0\cellx539\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1576\clver
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5}}\intbl\itap1\cell\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdr
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rr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf
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addt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrc
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l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~
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18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brd
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t3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\br
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx539\clvertalt\clbrdrb\brdrs\
brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt
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rdrcf0\cellx10330\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
rpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdr
cf0\cellx539\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\
cellx1576\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cel
lx3012\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4
348\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5684
\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6621\cl
vertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7758\clver
talt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8994\clvertal
t\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10330\pard\plain\intbl\itap1\cell\pard\plain\i
ntbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\
intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain
\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpad
db0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cl
brdrr\brdrs\brdrw20\brdrcf0\cellx539\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdr
r\brdrs\brdrw20\brdrcf0\cellx1576\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
rdrs\brdrw20\brdrcf0\cellx3012\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdr
s\brdrw20\brdrcf0\cellx4348\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\b
rdrw20\brdrcf0\cellx5684\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdr
w20\brdrcf0\cellx6621\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20
\brdrcf0\cellx7758\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\br
drcf0\cellx8994\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10330\row\pard\plain\s
a0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain
\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\
~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plai
n\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{141.}{\~}{Use the
accounting equation to answer each of the independent questions
below:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{a.}{\~}{ At the beginning of the year Norton Company assets were $75,000 and
its owner}{{\u8217}}{s equity was $38,000.}{\~}{ During the year, assets increased
by $18,000 and liabilities increased by $4,000.}{\~}{ What was the owner}{{\u8217}}
{s equity at the end of the
year?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b
0{{b.}{\~}{ At the beginning of the year Turpin Industries had liabilities of
$44,000 and owner}{{\u8217}}{s equity of $66,000.}{\~}{ If assets increased by
$10,000 and liabilities decreased by $5,000, what was the owner}{{\u8217}}{s equity
at the end of the
year?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4
\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\li
ne{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\
cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\kee
p\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa
0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{142.}{\~}{Collins Landscape Company purchased
various landscaping supplies on account to be used for landscape designs for their
customers.}{\~}{ How will this business transaction affect the accounting
equation?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{143.}{\~}{Bob Johnson is the sole owner of
Johnson}{{\u8217}}{s Carpet Cleaning Service.}{\~}{ Bob purchased a personal
automobile for $10,000 cash plus he took out a loan for $20,000 in his name.
Describe how this transaction is related to the business entity
keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}
\
par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa
319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{144.}{\~}{Shiny Kar Company
had the following transactions.}{\~}{ For each transaction, show the effect on the
accounting equation by putting the amount and direction (plus, minus, or NC for no
change) in each box of the table
below.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdrt\
brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\t
rbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\br
drcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3
\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\b
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Asse
ts}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{Liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{Owner}{{\u8217}}{s
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\row\trowd\trql\trbrdrt\brdrs\brdrw20\b
rdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\br
drw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\t
rrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpad
dft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\
cellx8568\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clb
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{ Shiny Kar withdrew
$500 cash for
food.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw2
cellx10338\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.
}{\~}{ Shiny Kar Company sold 2 cars for a total of $55,000 on
account.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brd
rw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\br
drs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trl
eft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0
\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\cl
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\clbrd
rb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf
0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\c
lbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\br
drcf0\cellx8568\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrc
f0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\row\trowd
llx5739\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrd
f0\cellx10338\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{
{c.}{\~}{ The cost of the cars sold in (b) above was
$40,000.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
{d.}{\~}{ Shiny Kar received $35,000 payment for a car previously
sold on
{e.}{\~}{ Shiny Kar paid $450 for
advertising. }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
f0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\
rdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdrb\brdrs\brdrw20\brdr
20\brdrcf0\cellx8568\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\row\
trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdr
s\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrd
rv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbr
brdrcf0\cellx10338\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{f. Shiny Kar purchased $150 of cleaning supplies on
\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3
\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\clb
rdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdr
l\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8568\clvertalt\clbrdrl\b
rdrs\brdrw20\brdrcf0\cellx10338\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trr
t3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\clbrdrl\brdrs\brdrw2
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdrl\brdrs\brdrw20\b
lain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\ke
\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{145.}{\~}{Ramierez Company received their first electric bill in the amount
of $60 which will be paid next month.}{\~}{ How will this transaction affect the
accounting
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{146.}{\~}{Jonathan Martin is the owner and
operator of Martin Consultants.}{\~}{ At December 31, 2011, Martin Consultants has
assets of $430,000 and liabilities of $205,000.}{\~}{ Using the accounting equation
and considering each case independently, determine the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\f
s24\b0{{a. Jonathan Martin, capital, as of December 31,
2011.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b. Jonathan Martin,
capital, as of December 31, 2012, assuming that assets increased by $12,000 and
liabilities increased by $15,000 in
2012.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c. Jonathan Martin,
capital, as of December 31, 2012, assuming that assets decreased by $8,000 and
liabilities increased by $14,000 during
2012.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{147.}{\~}{Simpson Auto Body Repair purchased
$20,000 of Machinery.}{\~}{ The company paid $8,000 in cash at the time of the
purchase and signed a promissory note for the remainder to be paid in four monthly
installments.}{\~}
{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{
(a) How will the purchase affect the accounting
equation?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) How will the
payment of the first monthly installment affect the accounting
ain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\
f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{148.}{\~}{On
July 1 of the current year, the assets and liabilities of John Wong, DVM, are as
follows: Cash, $27,000; Accounts Receivable, $12,300; Supplies, $3,100; Land,
$35,000; Accounts Payable, $13,900. What is the amount of owner's equity (John
Wong}{{\u8217}}{s capital) as of July 1 of the current
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{149.}{\~}{Indicate how the following
transactions affect the accounting
equation:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{(a) The purchase of supplies on
account.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) The purchase of
supplies for cash.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(c) A
withdraw by the owner to pay personal
expenses.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(d) Revenues received
in cash.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(e) Revenues received
on
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{150.}{\~}{Discuss the characteristics of a
LLC (Limited liability
company).}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{151.}{\~}{Kim Hsu is the owner of Hsu}
{{\u8217}}{s Financial Services.}{\~}{ At the end of its accounting period,
December 31, 2011, Hsu}{{\u8217}}{s has assets of $575,000 and owner}{{\u8217}}{s
equity of $335,000.}{\~}{ Using the accounting equation and considering each case
independently, determine the following
amounts.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{a.}{\~}{ Hsu}{{\u8217}}{s liabilities as of December 31,
2011. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.}{\~}{ Hsu}{{\u8217}}
{s liabilities as of December 31, 2012, assuming that assets increased by $56,000
and owner}{{\u8217}}{s equity decreased by
$32,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c.}{\~}{ Net income or
net loss during 2012, assuming that as of December 31, 2012, assets were $592,000,
liabilities were $450,000, and there were no additional investments or
withdrawals.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain
\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs2
2\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql
\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\
sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\p
lain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri
0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{152.}{\~}{a.}{\~}{ A vacant lot
acquired for $83,000 cash is sold for $127,000 in cash.}{\~}{ What is the effect of
the sale on the total amount of the seller}{{\u8217}}{s (1) assets, (2)
liabilities, and (3) owner}{{\u8217}}{s
equity?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24
\b0{{b.}{\~}{ Assume that the seller owes $52,000 on a loan for the land.}{\~}
{ After receiving the $127,000 cash in (a), the seller pays the $52,000 owed.}{\~}{
What is the effect of the payment on the total amount of the seller}{{\u8217}}{s
(1) assets, (2) liabilities, and (3) owner}{{\u8217}}{s
equity?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{153.}{\~}{Indicate whether each of the
following represents an asset, liability, or owner's
equity:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
addft3\clvertalt\cellx755\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{accounts
payable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
llx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{wages
expense}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{capital}
}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291
\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{accounts
receivable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{withd
rawal}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{land}}\int
bl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\row\
trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpa
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\plain\intbl\i
lvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\
b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\s
ain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{
{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plai
n\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs
22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plai
4\fs24\b0{{154.}{\~}{The
Austin Land Company sold land for $85,000 in cash.}{\~}{ The land was originally
purchased for $65,000.}{\~}{ At the time of the sale, $40,000 was still owed to
Regions Bank. After the sale, The Austin Land Company paid off the loan. Explain
the effect of the sale and the payoff of the loan on the accounting
equation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{155.}{\~}{Given the following:}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{ Beginning capital}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $
58,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Ending capital}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Owner's withdrawals}{\~}{\~}{ $}{\~}
4\b0{{Calculate net income or net
loss.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{156.}{\~}{The accountant for Franklin Company
prepared the following list of account balances from the company}{{\u8217}}{s
records for the year ended December 31,
2011:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx462\clvertalt\cellx4081\clvertalt\cellx5490\clvertalt\cellx5846
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
Earned}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{$165,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}
{ 30,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ellx4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cell
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx4081\clvertal
t\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx10768\pard\plain
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
Receivable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{14,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Selling
Expenses}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{44,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
rpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx46
2\clvertalt\cellx4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\c
lvertalt\cellx10768\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx
4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx107
68\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{E
quipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{64,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Franklin,
Capital}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{27,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
\clvertalt\cellx4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\cl
vertalt\cellx10768\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx4
8\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ac
counts
Payable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{12,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Interest
Income}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{3,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
lvertalt\cellx4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clve
rtalt\cellx10768\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx408
1\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx10768\
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sala
ries & Wages
Expense}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
Rent}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{2,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clv
ertalt\cellx4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvert
alt\cellx10768\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx4081\
clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx10768\pa
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Income
Taxes
3\f4\fs18\b0{{5,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Income Taxes
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{No
tes
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\ce
llx4081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx
10768\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap
1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\ita
p1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx4081\clvertalt\c
ellx5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx10768\row\pard\plai
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\li
ne{}\plain\cf3\f4\fs18\b0{{ Determine the total assets at the end of 2011 for
Franklin
Company.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{157.}{\~}{The accountant for Franklin
Company prepared the following list of account balances from the company}{{\u8217}}
{s records for the year ended December 31,
counts
ries & Wages
Taxes
tes
8\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\ce
ll\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\c
ell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx462\clvertalt\cellx4081\clvertalt\cellx
5490\clvertalt\cellx5846\clvertalt\cellx9149\clvertalt\cellx10768\row\pard\plain\sa
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}
\plain\cf3\f4\fs18\b0{{ Determine the total liabilities at the end of 2011 for
Franklin
in\cf3\f4\fs
22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0
\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\kee
pn\ql\plain\cf3\f4\fs24\b0{{158.}{\~}{The accountant for Franklin Company prepared
the following list of account balances from the company}{{\u8217}}{s records for
the year ended December 31,
counts
ries & Wages
Taxes
tes
\plain\cf3\f4\fs18\b0{{ Based on this information, is Franklin Company profitable?}
{\~}{ Explain your
answer.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{159.}{\~}{The assets and liabilities of Amos
Moving Services at March 31, 2014, the end of the current year, and its revenue and
expenses for the year are listed below.}{\~}{ The capital of the owner was $180,000
at April 1, 2013, the beginning of the current year.}{\~}{ Mr. Amos invested an
additional $25,000 in the business during the
year.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
8\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Accounts
3\f4\fs18\b0{{$2,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous
3\f4\fs18\b0{{$1,030}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\cell
x5366\clvertalt\cellx8968\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{$10,340}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Office
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$21,420}}\intbl\itap1\cell\pard\plain\
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intb
l\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
$1,670}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\ce
llx4732\clvertalt\cellx5366\clvertalt\cellx8968\clvertalt\cellx10097\row\trowd\trql
\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpa
ddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\cellx5366\clvertal
t\cellx8968\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{$73,450}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
3\f4\fs18\b0{{$23,550}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\cel
lx5366\clvertalt\cellx8968\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$47,000}}\intbl\itap1\cell\pard\plain
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Drawing}}\intb
$16,570}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
dl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\c
ellx4732\clvertalt\cellx5366\clvertalt\cellx8968\clvertalt\cellx10097\row\trowd\trq
l\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trp
addt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\cellx5366\clverta
lt\cellx8968\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
lain\cf3\f4\fs18\b0{{Building}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$157,630}}\intbl\itap1\cell\pard\plain\intbl\it
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\
cellx5366\clvertalt\cellx8968\clvertalt\cellx10097\row\trowd\trql\trleft0\trrh0\trk
eep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clv
alt\cellx10097\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\i
ntbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\
trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpad
dt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\cellx5366\clvertalt
\cellx8968\clvertalt\cellx10097\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ Prepare an
income statement for the current year ended March 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{160.}{\~}{The assets and liabilities of Amos
\fs18\b0{{Accounts
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ }}\plain\c
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a statement of owner}{{\u8217}}
{s equity for the current year ended March 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{161.}{\~}{The assets and liabilities of Amos
\fs18\b0{{Accounts
ntbl\itap1\c
ell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh
0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft
b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ Prepare a balance
sheet for the current year ended March 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{162.}{\~}{A summary of cash flows for Alex
Design Services for the year ended December 31, 2012, is shown
below.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\
trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpa
ddft3\clvertalt\cellx7494\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash
receipts:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
ddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7494\
clvertalt\cellx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7494\clvertalt\cel
lx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash
received from
customers}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{$83,990}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx
7494\clvertalt\cellx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7494\clvertal
t\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
Cash received from additional investment by
owner}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{25,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
lx10291\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\
ddft3\clvertalt\cellx7494\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\
keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
fb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\cl
vertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{Cash
payments:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
paid for
expenses}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{$27,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5
248\clvertalt\cellx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
addl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt
\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\
~}{\~}{\~}{\~}{ Cash paid for
land }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
lx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{\~}{\~}{\~}{ Cash paid for
supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{410}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
{\~}{\~}{\~}
{ Drawing}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
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ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt\
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18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt\cellx10291\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The cash
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t\cellx10291\clvertalt\cellx10332\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plai
n\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a statement of cash flows for
Alex Design Services for the year ended December 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{163.}{\~}{The total assets and the total
liabilities of a business at the beginning and at the end of the year appear
below.}{\~}{ During the year, the owner had withdrawn $55,000 for personal use and
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business.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
rpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\in
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\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\ce
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clver
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0{{Beginning of
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4\fs18\b0{{$305,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{$200,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
ep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clve
rtalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trr
t3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{End
of
4\fs18\b0{{365,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{230,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvert
alt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0
\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3
\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap
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dft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\pard\plain\sa
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Calcu
late the net income for the
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\keep\keepn\ql\plain\cf3\f4\fs24\b0{{164.}{\~}{What information does the Income
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users?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
a0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb31
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{165.}{\~}{What are the three sections of the
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Flows?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{166.}
{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{Match the following accounts
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3\f4\fs24\b0{{A. Balance
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describe the four primary financial statements for a
proprietorship.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs2
4\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\pl
ain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\
fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn
\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\r
i0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\par
d\plai
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{168.}{\~}{There are four transactions that
affect Owner}{{\u8217}}{s equity.}{\~}
(a) What are the two types of transactions that increase Owner}{{\u8217}}{s
equity?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) What are the two
types of transactions that decrease Owner}{{\u8217}}{s
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{169.}{\~}{A summary of cash flows for Lopez
Wedding Planning}{\~}{ for the year ended December 31, 2011 is shown
received from
Cash received from bank
loan}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{15,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7494\c
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7494\clvertalt\cell
x10291\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\t
dft3\clvertalt\cellx7494\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\k
eepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clv
ertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18
\b0{{Cash
paid for operating
~}{\~}{\~}{\~}{ Cash paid for
equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{18,070}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
~}{\~}{\~}{\~}{ Cash paid for party
f3\f4\fs18\b0{{9,480}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
8\clvertalt\cellx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
ellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{\~}{\~}{\~}
~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
t\cellx10291\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt\cellx10291\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The cash
Lopez Wedding Planning}{\~}{ for the year ended December 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{170.}{\~}{Explain the interrelationship
between the Balance Sheet and the Statement of Cash
Flows.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{171.}{\~}{The following data were taken from
Harrison Company}{{\u8217}}{s balance
sheet:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Dec. 31,
2012}}}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{Dec. 31,
2011}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Total liabilities}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $150,000}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}
{ $105,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Total owner}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 75,000}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\b0{{a.
Compute the ratio of liabilities to owner}{{\u8217}}{s
equity.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24
\b0{{b. Has the creditors}{{\u8217}}{ risk increased or decreased from December 31,
2011, to December 31,
2012?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{172.}{\~}{Company G has a ratio of liabilities
to stockholders}{{\u8217}}{ equity of 0.12 and 0.28 for 2010 and 2011,
respectively. In contrast, Company M has a ratio of liabilities to stockholders}
{{\u8217}}{ equity of 1.13 and 1.29 for the same
period. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{REQUIRED:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Based on this
information, which company's creditors are more at risk and why? Should the
creditors of either company fear the risk of
nonpayment?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\
cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22
\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\
plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\s
\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{173.}{\~}{Given the following
{\~}{\~}{\~}{\~}{\~}{ }}}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{Dec.
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $128,250}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 95,000}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\b0{{a. Compute the ratio of liabilities to owner}{{\u8217}}{s equity for each
year.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b. Has the creditors}
{{\u8217}}{ risk increased or decreased from December 31, 2013, to December 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{174.}{\~}{The assets and liabilities of S&P
Day Spa at December 31, 2014 and expenses for the year are listed below.}{\~}{ The
capital of the owner was $68,000 at January 1, 2014.}{\~}{ The owner invested an
additional $10,000 during the year.}{\~}{ Net income for 2014 is
$45,625.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdr
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3666\clve
3\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
n\ql\plain\cf3\f4\fs18\b0{{\~}{ Spa Operating
3\f4\fs18\b0{{$23,760 }}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\b
rdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\tr
keep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\cl
rs\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\
brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx81
78\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\br
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\row\trowd\trql\trbrdrt
rw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{$8,490}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Office
3\f4\fs18\b0{{$2,470 }}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
rbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\br
drcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trk
s\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\b
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\row\trowd\trql\trbrdrt\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$1
3,980}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{\~}{ Spa
Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{$9,230 }}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
vertalt\
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\row\trowd\trql\trbrdrt\brdrs\b
rdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\
brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\t
rleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpadd
t0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{???}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{\~}{ Wages
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Spa
Furniture &
Equipment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
eepn\ql\plain\cf3\f4\fs18\b0{{\~}
cf3\f4\fs18\b0{{$38,170 }}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf
0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20
\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\
brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\row\trowd\trql\trbrd
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx3666\clv
33\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Computers}
8\b0{{$2,130}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
pn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\
brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\b
rdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\
ddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
rdrt\brdrs\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdr
l\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0
\cellx8178\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\cl
brdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\row\trowd\trql
ddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3666\clvertalt\clbrdrl\
brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrl\brd
rs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8178\clvertalt\clbrdrl\brdrs\
brdrw20\brdrcf0\cellx10233\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\
pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
vertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3666\clvertalt\clbrdrl\brdrs\brdrw20\brd
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf
0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8178\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\c
ellx10233\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\
plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare an income statement for
the current year ended December 31,
Day Spa at December 31, 2014 and its revenue and expenses for the year are listed
below.}{\~}{ The capital of the owner is $68,000 at December 31, 2014.}{\~}{ The
owner invested an additional $10,000 during the
year.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdrt\b
0\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrb\brdrs\brdrw20\b
rdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\br
drw20\brdrcf0\cellx8178\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw
20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\p
n\ql\plain\cf3\f4\fs18\b0{{\~}{
Spa Operating
f4\fs18\b0{{\~}{ Spa
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
n\ql\plain\cf3\f4\fs18\b0{{\~}{ Wages
Furniture &
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5418\clvertal
rw20\brdrcf0\cellx10233\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{Computers}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{$2,130}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\t
rbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\br
drcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brd
rw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\tr
paddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\br
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx36
66\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5418\
clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8178\clv
ertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10233\pard\plain\intbl\itap1\cell\pard\pl
ain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\
trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3666\clvertalt\clbr
drl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5418\clvertalt\clbrdrl
\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8178\clvertalt\clbrdrl\br
drs\brdrw20\brdrcf0\cellx10233\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\c
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Determine the capital of the owner at
January 1, 2014 (}}\plain\cf3\f4\i\fs18\b0{\plain\cf3\f4\i\fs18\b0{{Hint: Calculate
the increase/decrease in owner}{{\u8217}}{s equity
first.}}}\plain\cf3\f4\fs18\b0{{).}{\~}{ Prepare a statement of owner}{{\u8217}}{s
equity for the current year ended December 31,
Day Spa at December 31, 2014 and its revenue and expenses for the year are listed
below.}{\~}{ The capital of the owner was $68,000 at January 1, 2014.}{\~}{ The
owner invested an additional $10,000 during the
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{??
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s18\b0{{\~}{ Spa
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rs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbr
drh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpadd
b0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clb
cf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\
rdrcf0\cellx7099\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrc
f0\cellx953\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap
1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs
\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\row\par
d\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\
~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ke
epn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li
0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\
pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\f
s22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\
pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{179.}{\~}
{Determine the missing amount for each of the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trle
ft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\
trpaddft3\clvertalt\cellx2605\clvertalt\cellx5740\clvertalt\cellx8963\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{\~}}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Assets}}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\c
f3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Owner's
Equity}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
ellx5740\clvertalt\cellx8963\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2605\clver
talt\cellx5740\clvertalt\cellx8963\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{$38,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{$45,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
alt\cellx2605\clvertalt\cellx5740\clvertalt\cellx8963\row\trowd\trql\trleft0\trrh0\
clvertalt\cellx2605\clvertalt\cellx5740\clvertalt\cellx8963\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$30,000}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$22,000}}\in
tbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2605\clvertalt\cellx5740\clv
ertalt\cellx8963\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
l\plain\cf3\f4\fs18\b0{{$}{\~}{\~}
{32,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
lvertalt\cellx5740\clvertalt\cellx8963\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
2605\clvertalt\cellx5740\clvertalt\cellx8963\pard\plain\intbl\itap1\cell\pard\plain
db0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\ce
llx2605\clvertalt\cellx5740\clvertalt\cellx8963\row\pard\plain\sa0\li0\ri0\sb0\keep
\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{180.}{\~}{Identify each of the following as
an (1) increase in owner's equity, or a (2) decrease in owner's
equity.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
Earned}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lx10606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
Expense}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Withdraw
al}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
rpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10
606\row\trowd\trql\
dt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Lawn Care
Revenue}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Investme
nt}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies
plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\
trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clverta
lt\cellx777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\
sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}
\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\q
l\plain\cf3\f4\fs24\b0{{181.}{\~}{Selected transactions completed by a
proprietorship are described below.}{\~}{ Indicate the effects of each transaction
on assets, liabilities, and owner's equity by inserting "+" for increase and "-"
for decrease in the appropriate columns at the right.}{\~}{ If appropriate, you may
insert more than one symbol in a
column.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
addft3\clvertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx94
25\clvertalt\cellx10729\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
epn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{A}}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f
4\ul1\fs18\b0{{L}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{OE}}}\intbl\itap1\cell\trowd\
trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clver
talt\cellx9425\clvertalt\cellx10729\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rece
ived cash from owner as an additional
investment}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft
paddft3\clvertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9
cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Purchased
supplies on
account}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft0\t
\clvertalt\cellx10729\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lx6817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid rent for the
current
month}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft0\trr
t3\clvertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\c
6817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash for
services sold to
cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft0
ellx6817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Returned some
defective supplies purchased in
(b)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\clv
ertalt\cellx10729\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
17\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid insurance
premiums in
advance}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid cash to
creditor for purchases in
plai
n\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trk
ertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\clverta
lt\cellx10729\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx6817\c
lvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(h)}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Charged customers for
services sold on
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(i)}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid cash to a
customer as a refund for an
overcharge}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(j)}}\intbl\itap1\cell\pa
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash
on account from
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(k)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner withdrew
cash for personal
use}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(l)}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Recorded the cost of
supplies used during the
4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{_____}}\intbl\itap1\cell\trowd\trql\trleft0\trrh
3\clvertalt\cellx777\clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\cl
817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(m)}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received invoice for
electricity
used}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(n)}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
wages}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(o)}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Purchased a truck
for
cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
tap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\
itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\
clvertalt\cellx6817\clvertalt\cellx8121\clvertalt\cellx9425\clvertalt\cellx10729\ro
w\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain
\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{182.}{\~}
{From the following list of accounts taken from Lamar}{{\u8217}}{s accounting
records, identify those that would appear on the Income
Statement.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trle
trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\i
ntbl\itap1\c
trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql
ddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital}}\intbl\itap1\cell\trow
d\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr
3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0
b0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Withdrawa
l}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
06\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1\
llx777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\l
i0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par
\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\pla
in\cf3\f4\fs24\b0{{183.}{\~}{Identify which of the following accounts appear on a
balance
sheet.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\
ddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkee
p\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clver
plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Joe
Brown,
Capital}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
Payable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
Advertising}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertal
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land
}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
addfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx1060
6\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr
0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\i
ntbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cell
x777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0
\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\p
ard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs
22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{
}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3
\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\q
l\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain
\cf3\f4\fs24\b0{{184.}{\~}{Indicate whether each of the following activities would
be reported on the Statement of Cash Flows as an Operating Activity, an Investing
Activity, a Financing Activity, or does not appear on the Cash Flow
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash paid for
building}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ellx10606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash
paid to
suppliers}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
cellx10606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash
paid for owner's
withdrawal}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\c
777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{Cash received from
customers}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap
received from the owner's
investment}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash
received from the sale of a
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Borrowe
d cash from a
bank}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
10606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\pla
cellx777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf
3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0
\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\p
ep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\p
lain\cf3\f4\fs24\b0{{185.}{\~}{For each of the following, determine the amount of
net income or net loss for the
dft3\clvertalt\cellx755\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Revenues for the year totaled $71,300 and
expenses totaled $35,500. The owner made an additional investment of $15,000 during
the
year.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Revenues
for the year totaled $220,500 and expenses totaled $175,000. The owner withdrew
$40,000 during the
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\ce
for the year totaled $149,000 and expenses totaled $172,000. The owner invested an
additional $12,000 and withdrew $16,000 during the
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\ce
for Konner Co. totaled $198,150 and expenses totaled $174,200. Cash withdrawals of
$35,000 were paid during the
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\
eep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\
plain\cf3\f4\fs24\b0{{186.}{\~}{The total assets and total liabilities of Paul}
{{\u8217}}{s Pools, a proprietorship, at the beginning and at the end of the
current fiscal year are as
follows:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft
paddft3\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\u
l1\fs18\b0{{Jan.
1}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Dec.
31}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7040\clvertalt\cellx
ain\cf3\f4\fs18\b0{{Total
assets}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
pn\ql\plain\cf3\f4\fs18\b0{{$475,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
vertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\row\trowd\trql\trleft0\t
dft3\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{205,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{130,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\row\trowd\trql\trleft
bl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\tr
0\trpaddft3\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\row\pard\p
lain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\tr
eepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Determine the amount of net income earned
during the year.}{\~}{ The owner did not invest any additional assets in the
business during the year and made no
withdrawals.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpad
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx9975\row\trowd\t
rql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\t
rpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx9975\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Determine the amount of net
income during the year.}{\~}{ The assets and liabilities at the beginning and at
the end of the year are unchanged from the amounts presented above.}{\~}{ However,
the owner withdrew $53,000 in cash during the year (no additional
investments).}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
alt\cellx9975\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx733\clvertalt\cellx9975\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Dete
rmine the amount of net income earned during the year.}{\~}{ The assets and
liabilities at the beginning and at the end of the year are unchanged from the
amounts presented above.}{\~}{ However, the owner invested an additional $35,000 in
cash in the business in June of the current fiscal year (no
withdrawals).}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\it
cash in August of the current fiscal year and made twelve monthly cash withdrawals
of $1,500 each during the
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\c
ellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\l
i0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par
in\cf3\f4\fs24\b0{{187.}{\~}{Selected transaction data of a business for September
are summarized below.}{\~}{ Determine the following amounts for September:}{\~}
{ (a) total revenue, (b) total expenses, (c) net
income.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
addft3\clvertalt\cellx9303\clvertalt\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Service sales charged to customers on account
during
September}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
Cash received from cash customers for services performed in
\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{C
ash received from customers on account during
September:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx9303
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{\~}{\~}{Services performed and charged to customers prior to
~}{\~}{\~}{Services performed and charged to customers during
\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{E
xpenses incurred prior to September and paid during
cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ex
penses incurred and paid in
xpenses incurred in September but not paid in
penses for supplies used and insurance (not included above) applicable to
cellx10607\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx9303\clvertalt\cellx10607\row\pard\plain\sa0\li0\ri0\sb0\ke
ep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{188.}{\~}{On March 1, 2014, the amount of
Norton Cook's capital in Cook}{{\u8217}}{s Catering Company was $150,000.}{\~}
{ During March, he withdrew $31,000 from the business.}{\~}{ The amounts of the
various
assets, liabilities, revenues, and expenses are as
paddft3\clvertalt\cellx8882\clvertalt\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
payable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{$}{\~}{\~}
{10,250}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx8882\clvertalt\cellx10607\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
receivable}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{45,950}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
x10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
earned}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{64,950}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Insu
rance
expense}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{1,275}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land
18\b0{{85,400}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
talt\cellx10607\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
07\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellane
ous
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prep
aid
insurance}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Re
nt
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sala
ry
ellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sup
plies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{900}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
0607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies
3\f4\fs18\b0{{525}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
x10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilit
ies
llx10607\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0
addft3\clvertalt\cellx8882\clvertalt\cellx10607\row\pard\plain\sa0\li0\ri0\sb0\keep
\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Present, in good form,
(a) an income statement for March, (b) a statement of owner's equity for March, and
(c) a balance sheet as of March
31.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\
s22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line
{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf
3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\
keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\
li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\k
eep\keepn\ql\plain\cf3\f4\fs24\b0{{189.}{\~}{Simpson Designers began operations on
April 1, 2011.}{\~}{ The financial statements for Simpson Designers are shown below
for the month ended April 30, 2011 (the first month of operations).}{\~}{ Determine
the missing amounts for letters (a) through
(o).}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\tr
ft3\clvertalt\cellx7093\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{Simpson
Designers}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
Statement}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Month Ended
April 30,
2011}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\row\trowd\trql
ddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\pl
\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{$27,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\tr
vertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
expenses:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\trke
ep\trpaddb0\trpa
clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Wages
n\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\tr
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Rent
3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpad
llx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\trkee
talt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Supplies
\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
ertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Utilities
3\f4\fs18\b0{{400}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Miscellaneous
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}
{1,250}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
vertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{Total operating
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}
{(b)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
lx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvert
plain\cf3\f4\fs18\b0{{Net
income}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{(c)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
alt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\cell\pard\plain\intbl\ita
p1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
vertalt\cellx8923\clvertalt\cellx10648\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql
\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\tr
\b0{{Simpson
Designers}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner's
Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Month Ended
April 30,
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Lori Simpson,
capital, April 1,
ain\cf3\f4\fs18\b0{{0}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
93\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\trkeep\trp
cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Investment on April 1,
rtalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net income for
April}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{(d)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clve
rtalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
93\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{(e)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
3\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Less
withdrawals}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
0\keepn\ql\plain\cf3\f4\fs18\b0{{Increase in owner's
equity}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}
{(f)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
plain\cf3\f4\fs18\b0{{Lori
Simpson, capital, April 30,
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\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\ro
w\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\tr
paddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx1
0648\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1
llx10648\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\p
lain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
l0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3409\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Simpson
Designers}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{April 30,
ain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Assets}}}\intbl\itap1\cell\pard\p
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b
0{\plain\cf3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\tr
0\trpaddft3\clvertalt\cellx3409\clvertalt\cellx5028\clvertalt\cellx5490\clvertalt\c
ellx9004\clvertalt\cellx10729\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
rtalt\cellx5028\clvertalt\cellx5490\clvertalt\cellx9004\clvertalt\cellx10729\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}
{(g)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
ain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{$}{\~}
{(i)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
x5028\clvertalt\cellx5490\clvertalt\cellx9004\clvertalt\cellx10729\row\trowd\trql\t
t0\trpaddft3\clvertalt\cellx3409\clvertalt\cellx5028\clvertalt\cellx5490\clvertalt\
cellx9004\clvertalt\cellx10729\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{8,100}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{
{Owner's
Equity}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
vertalt\cellx5028\clvertalt\cellx5490\clvertalt\cellx9004\clvertalt\cellx10729\row\
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx3409\clvertalt\cellx5028\clvertalt\cellx549
eepn\ql\plain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}
{(h)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
lain\cf3\f4\fs18\b0{{Lori Simpson,
capital}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}
{(j)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
lx5028\clvertalt\cellx5490\clvertalt\cellx9004\clvertalt\cellx10729\row\trowd\trql\
\cellx9004\clvertalt\cellx10729\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{Total
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$55,900}}}\intbl\itap1\cell\pard\plain\i
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
liabilities
and}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
alt\cellx5028\clvertalt\cellx5490\clvertalt\cellx9004\clvertalt\cellx10729\row\trow
3\trpaddt0\trpaddft3\clvertalt\cellx3409\clvertalt\cellx5028\clvertalt\cellx5490\cl
vertalt\cellx9004\clvertalt\cellx10729\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
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\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\
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{(l)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
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{\~}{\~}{\~}{\~}
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ft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
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dt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\
clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
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0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\cell\trowd\trql\trle
trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trke
rtalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\cell\trowd\trql\trleft0\
ddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkeep\t
rpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertal
t\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh
3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkeep\trpad
llx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
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ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
vertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
4\fs18\b0{{(g)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{____
_______}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(h)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{________
___}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
0606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpa
ddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(i)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(j)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\in
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row
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addfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(k)}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\
itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\tro
wd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddf
r3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(l)}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap
1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(m)}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\ce
ll\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\t
rpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(n)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\cell\t
rowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpad
dfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trle
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(o)}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{___________}}\intbl\itap1\cell\trowd
\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\
ddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\cell\pard\plai
n\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs
24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\pl
n\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\
~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\
cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\
~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{190.}
{\~}{Eric Wood, CPA, was organized on January 1, 2011, as a proprietorship.}{\~}
{ List the errors that you find in the following financial statements and prepare
the corrected statements for the three months ended March 31,
2011.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx7093\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{Eric Wood,
CPA}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
Statement}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Three Months
Ended March 31,
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Salary
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Advertising
eep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddf
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{ Miscellaneous
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Answering service
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Supplies
3\f4\fs18\b0{{\~}
{\~}}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{4,000}}}\intbl\itap1\cell
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tap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trp
addr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertal
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\c
18\b0{{Total operating
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cellx10648\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\
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\keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood,
CPA}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner's
Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{March 31,
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood, capital,
January, 1,
ain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{0}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\t
in\cf3\f4\fs18\b0{{Investment on January 1,
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\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}
{14,000}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
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li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{36,000}}\intbl\itap1\cell\pard\plain\int
0648\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less
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ql\plain\cf3\f4\fs18\b0{{Eric Wood, capital, March 31,
llx10648\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\tr
owd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpadd
fr3\trpaddt0\trpaddft3\clvertalt\cellx3619\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Three Months
Ended March 31,
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ellx5449\clvertalt\cellx8963\clvertalt\cellx10688\pard\plain\intbl\itap1\sa0\li0\ri
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}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul
1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Owner's
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{$13,000}{\~}
{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{\~}{ Eric Wood,
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8\b0{{10,860}{\~}
\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx3619\clvertalt\cellx5449\clvertalt\cellx8963\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{2,670}{\~}
\fs18\b0{{\~}{ Accounts
\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}
{2,225}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\
plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{925}}}\plain\cf3\f4\fs18\b0{{\~}
\fs18\b0{{\~}{\~}{ }{\~}{Total liabilities
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$33,225}}}\plain\cf3\f4\fs18\b0{{\~}
\fs18\b0{{\~}{\~}{\~}{\~}{ owner's
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$33,225}}}\intbl\itap1\cell\trowd\trql\t
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trq
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3619\clvertalt\cellx5449\
clvertalt\cellx8963\clvertalt\cellx10688\pard\plain\intbl\itap1\cell\pard\plain\int
ellx10688\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\
cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ke
epn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li
0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\
{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{191.}{\~}{Using the following accounts and their amounts, prepare in good format
an Income Statement for Bright Futures Company, month ended August 31,
\keepn\ql\plain\cf3\f4\fs18\b0{{Telephone
4\clvertalt\cellx5133\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
llx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}
8\b0{{$3,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
llx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jason
Bright,
Drawing}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{$800}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
clvertalt\cellx5133\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\f4\fs18\b0{{$15,700}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
llx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
paddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3274\clvertalt\cellx5133\r
ow\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\t
rpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3274\clvertalt\cellx5133\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$140}}\intbl\
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{$1,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
\cellx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Co
mputer
\cellx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ja
son Bright,
ellx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wage
s
llx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utili
ties
x5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
llx5133\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Offic
e
x5133\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clvertalt\cellx3274\clvertalt\cellx5133\row\pard\plain\sa0\li0\ri0\sb0\keep\kee
pn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\
eep\keepn\ql\plain\cf3\f4\fs24\b0{{192.}{\~}{Using the following accounts and their
amounts, prepare in good format a Statement of Owner}{{\u8217}}{s Equity for Bright
Futures Company, month ended August 31,
Bright,
llx5134\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Suppl
ies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{$140}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
rtalt\cellx5134\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
mputer
\cellx5134\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jason Bright,
s
ties
e
eep\keepn\ql\plain\cf3\f4\fs24\b0{{193.}{\~}{Using the following accounts and their
amounts, prepare in good format a Balance Sheet for Bright Futures Company, month
ended August 31,
Bright,
mputer
son Bright,
s
ties
paddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3
\
trpaddt0\trpaddft3\clvertalt\cellx3792\clvertalt\cellx5765\row\trowd\trql\trleft0\t
\keepn\ql\plain\cf3\f4\fs18\b0{{Office
eep\keepn\ql\plain\cf3\f4\fs24\b0{{194.}{\~}{The account balances of Trendsetter
Travel Services at December 31, 2014 are listed
below:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\
ddft3\clvertalt\cellx3009\clvertalt\cellx4534\clvertalt\cellx5069\clvertalt\cellx86
4\fs18\b0{{Accounts
3\f4\fs18\b0{{$12,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{J. Trendsetter, Capital}{\~}
{ 1/1/14}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
llx5069\clvertalt\cellx8671\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li0\ri0
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\trow
97\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\int
\plain\cf3\f4\fs18\b0{{Taxes
\clvertalt\cellx4534\clvertalt\cellx5069\clvertalt\cellx8671\clvertalt\cellx10097\r
rpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3009\clvertalt\cellx4534\clvertalt\cellx
0\keepn\ql\plain\cf3\f4\fs18\b0{{Computer
cf3\f4\fs18\b0{{21,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
\f4\fs18\b0{{78,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies
5069\clvertalt\cellx8671\clvertalt\cellx10097\pard\plain\intbl\itap1\cell\pard\plai
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\pla
in\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
4\clvertalt\cellx5069\clvertalt\cellx8671\clvertalt\cellx10097\row\pard\plain\sa0\l
i0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare
an income statement,}{\~}{ statement of owner}{{\u8217}}{s equity, and a balance
sheet as of December 31,
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{195.}{\~}{The accountant for Flagger Company
prepared the following list of account balances from the company}{{\u8217}}{s
records for the year ended December 31,
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx
\clvertalt\cellx10768\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{Accounts
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Flagger,
counts
ries & Wages
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{In
come Taxes
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Notes
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Income Taxes
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepa
re an Income Statement for Flagger Company in good
form.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{196.}{\~}{Schultz Tax Services, a tax
preparation business had the following transactions during the month of
June:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{{1.}{\~}{ Received cash for providing accounting
services, $3,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{2.}{\~}
{ Billed customers on account for providing services,
$7,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{3.}{\~}{ Paid
advertising expense, $800.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{4.}
{\~}{ Received cash from customers on account,
$3,800.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{5.}{\~}{ Owner made a
withdrawal, $1,500.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{6.}{\~}
{ Received telephone bill,
$220.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{7.}{\~}{ Paid telephone
bill,
$220}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0
\line{}\plain\cf3\f4\fs24\b0{{Based on the information given above, calculate the
balance of Cash at June 30.}{\~}{ (Hint: Use the following
reconcilitation.)}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\c
f3\f4\fs24\b0{{Cash, June 1}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ $25,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{Plus: cash receipts for June}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ ____________}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\
f4\fs24\b0{{Minus: cash payments for June}{\~}{\~}
f4\fs24\b0{{Cash, June 30}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ ____________}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24
\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\pla
in\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\f
s22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\
ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard\plain\sa0\li0\ri
0\sb0\keep\keepn\ql\plain\cf3\f4\fs22\b0\line{}\plain\cf3\f4\fs22\b0{{\~}}\par\pard
\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa0\li0\ri
0\sb0\ql\plain\cf3\f4\
fs18\b0{}\par\sbkpage\sect\sectd\pgnstarts1\pgnrestart\pard\plain\sa532\li0\ri0\sb5
32\ql\plain\cf3\f4\fs40\b0{{Chapter 1--Introduction to Accounting and
Business }}\plain\cf5\f4\fs40\b0{\plain\cf5\f4\fs40\b0{{Key}}}\plain\cf3\f4\fs40\b0
\line{}\plain\cf3\f4\fs40\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql
\plain\cf3\f4\fs24\b0{{1.}{\~}{The main objective of a not-for-profit business
}}}}\plain\cf3\f4\fs24\b0{{ to make a
profit.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{2.}{\~}{ An example of an external user of
accounting information is the federal
government.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{3.}{\~}{A corporation is a business that is
legally separate and distinct from its
e{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa0
keep\keepn\ql\plain\cf3\f4\fs24\b0{{4.}{\~}{About 90% of the businesses in the
United States are organized as
b0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\pl
\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{5.}{\~}{The role of accounting is to
provide many different users with financial information to make economic
decisions.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\
line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{6.}{\~}{Proprietorships are owned by one
owner and provide only services to their
line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{7.}{\~}{Only large companies such as Wal-
Mart, JCP, General Motors, and the Bank of America can be organized as
b0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\pl
\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{8.}{\~}{Accounting information users
need reports about the economic activities and condition of
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{9.}{\~}{Senior executives cannot be
criminally prosecuted for the wrong doings they commit on behalf of the companies
where they
work.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0\
eep\keepn\ql\plain\cf3\f4\fs24\b0{{10.}{\~}{The primary role of accounting is to
determine the amount of taxes a business will be required to pay to taxing
entities.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{11.}{\~}{An account receivable is typically
classified as a
ne{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\s
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{12.}{\~}{Managerial accounting information is
used by external and internal users
equally.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{13.}{\~}{Financial accounting provides
information to all users, while the main focus for managerial accounting is to
provide information to the
management.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{14.}{\~}{Proper ethical conduct implies
that you only consider what's in your best
interest.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{15.}{\~}{Some of the major fraudulent acts
by senior executives started as what they considered to be small ethical lapses
which grew out of
control.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
ne{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{16.}{\~}{Two factors that typically lead to
ethical violations are relevance and timeliness of accounting
information.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\pla
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{17.}{\~}{A business is an organization in
where basic resources or inputs, like materials and labor, are assembled and
processed to provide outputs in the form of goods or services to
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{18.}{\~}{The Financial Accounting Standards
Board (FASB) is the authoritative body that has primary responsibility for
developing accounting
principles.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{19.}{\~}{The cost concept is the basis for
entering the exchange price into the accounting
records.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{20.}{\~}{The unit of measurement concept
requires that economic data be recorded in a common unit of
measurement.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plai
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{21.}{\~}{If a building is appraised for
$85,000, offered for sale at $90,000, and the buyer pays $80,000 cash for it, the
buyer would record the building at
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{22.}{\~}{Generally accepted accounting
principles regulate how and what financial information is reported by
319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{23.}{\~}{The accounting equation can be
expressed as Assets - Liabilities = Owner's
Equity.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
keep\keepn\ql\plain\cf3\f4\fs24\b0{{24.}{\~}{The rights or claims to the assets of
a business may be subdivided into rights of creditors and rights of
keep\keepn\ql\plain\cf3\f4\fs24\b0{{25.}{\~}{The
owner}{{\u8217}}{s rights to the assets rank ahead of the creditors' rights to the
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{26.}{\~}{If the liabilities owed by a business
total $300,000 and owners equity is equal to $300,000, then the assets also total
$300,000.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{27.}{\~}{If total assets decreased by
$30,000 during a specific period and owner's equity decreased by $35,000 during the
same period, the period's change in total liabilities was an $65,000
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{28.}{\~}{If total assets increased by
$190,000 during a specific period and liabilities decreased by $10,000 during the
same period, the period's change in total owner's equity was a $200,000
ine{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\s
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{29.}{\~}{If net income for a proprietorship
was $50,000, the owner withdrew $20,000 in cash and the owner invested $10,000 in
cash, the capital of the owner increased by
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{30.}{\~}{An account receivable is a claim
against a customer arising from a sale on
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{31.}{\~}{Paying an account payable increases
liabilities and decreases
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{32.}{\~}{ Receiving payments on an account
receivable increases both equity and
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{33.}{\~}{Cash withdrawals by owners decrease
assets and increase
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{34.}{\~}{Purchasing supplies on account
increases liabilities and decreases
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{35.}{\~}{Receiving a bill or otherwise being
notified that an amount is owed
}}}}\plain\cf3\f4\fs24\b0{{ recorded until the amount is
paid.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
eep\keepn\ql\plain\cf3\f4\fs24\b0{{36.}{\~}{Revenue is earned only when money is
received.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{37.}{\~}{Expenses are assets that are used
up during the process of earning
\keep\keepn\ql\plain\cf3\f4\fs24\b0{{38.}{\~}{The excess of revenue over the
expenses incurred in earning the revenue is called
capital.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{39.}{\~}{The principal financial statements
of a proprietorship are the income statement, statement of owner's equity, and the
balance
sheet.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plain\sa0
keep\keepn\ql\plain\cf3\f4\fs24\b0{{40.}{\~}{An income statement is a summary of
the revenues and expenses of a business as of a specific
date.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
eep\keepn\ql\plain\cf3\f4\fs24\b0{{41.}{\~}{A statement of owner's equity reports
the changes in the owner's equity for a period of
time.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{TRUE}}}\par\pard\plain\sa0\l
i0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\ke
ep\keepn\ql\plain\cf3\f4\fs24\b0{{42.}{\~}{The statement of cash flows consists of
three sections: cash flows from operating activities, cash flows from income
activities, and cash flows from equity
activities.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\plai
b319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{43.}{\~}{The financial statements of a
proprietorship should include the owner's personal assets and
liabilities.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{FALSE}}}\par\pard\pla
sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{44.}{\~}{The balance sheet represents the
accounting
equation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{45.}{\~}{An example of a general-purpose
financial statement would be a report about projected price increases related to
transportation
costs.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
keep\keepn\ql\plain\cf3\f4\fs24\b0{{46.}{\~}{No significant differences exist
between the accounting standards issued by the FASB and the
IASB.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
eep\keepn\ql\plain\cf3\f4\fs24\b0{{47.}{\~}{The Sarbanes-Oxley Act prohibits CPAs
from providing nonaudit investment banking
services.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{48.}{\~}{The main objective for all business
is to maximize unrealized
profits.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{49.}{\~}{The basic difference between
manufacturing and merchandising companies is the completion level of the products
they purchase for resale to
19\keep\keepn\ql\plain\cf3\f4\fs24\b0{{50.}{\~}{Net
income and net profit
do }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{not
}}}}\plain\cf3\f4\fs24\b0{{ mean the same
thing.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
keep\keepn\ql\plain\cf3\f4\fs24\b0{{51.}{\~}{Profit is the difference
between}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\
cf3\f4\fs24\b0{{\~}{assets and
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{the incoming cash and
outgoing
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{the assets purchased with cash
contributed by the owner and the cash spent to operate the
business}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b
0{{\~}{the amounts received from customers for goods or services and the amounts
paid for}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{the inputs used to
provide the goods or
services.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{52.}{\~}{Most businesses in the United States
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf
3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}
{proprietorships}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\
fs24\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{partnerships}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs2
4\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{corporations}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs2
4\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{co-
operatives}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{53.}{\~}{Which of the items below
}}}\plain\cf3\f4\i\fs24\b1{\plain\cf3\f4\i\fs24\b1{{ }}}}\plain\cf3\f4\fs24\b0{{a
business
entity?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plai
n\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}
{entrepreneurship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4
\fs24\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
s24\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{corporation}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{54.}{\~}{An entity that is organized according to state or federal
statutes and in which ownership is divided into shares of stock is
a}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\p
lain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f4
\fs24\b0{{\~}
{proprietorship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\u
l1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4
\fs24\b0{{\~}
{corporation}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{governmental
unit}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{55.}{\~}{Financial reports are used
by}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f
4\fs24\b0{{\~}
{management}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{investors}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24
\b0{{\~}{all are
correct}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{56.}{\~}{Which of the
following }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\
b1{{best}}}}\plain\cf3\f4\fs24\b0{{ describes
\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\pl
ain\cf3\f4\fs24\b0{{\~}{records economic data but does not communicate the data to
users according to any specific
rules.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0{
{\~}{is an information system that provides reports to users regarding economic
activities and condition of a
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{is of no use by individuals
outside of the
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{is used only for filling
out tax returns and for financial statements for various type of governmental
reporting
requirements.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plai
4\fs24\b0{{57.}{\~}{Two common areas of accounting that respectively provide
information to internal and external users
are:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3
\f4\fs24\b0{{\~}{forensic accounting and financial
accounting}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24
\b0{{\~}{managerial accounting and financial
0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{managerial accounting and
environmental
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{financial accounting and
tax accounting
systems}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{58.}{\~}{Which type of accountant typically practices as an individual or as a
member of a public accounting
firm?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\
cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{Certified Public
Accountant}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Certified Payroll
Professional}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Certified Internal
Auditor}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Certified Management
Accountant}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{59.}{\~}{All of the following are general-purpose financial
statements }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24
\b1{{except}}}}\plain\cf3\f4\fs24\b0{{: }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f4\fs24\b0{{\~}{balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{income
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{statement of owner}
{{\u8217}}{s
equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{
{\~}{cash
budget}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{60.}{\~}{Which of the following is a manufacturing
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plai
n\cf3\f4\fs24\b0{{\~}{Amazon.com.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{Wal-
Mart.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{
\~}{Ford
Motors.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Delta
Airlines}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{61.}{\~}{Which of the following group of companies are all examples of a
merchandising
n\cf3\f4\fs24\b0{{\~}{Delta Airlines, Marriott,
Gap}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plai
n\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Gap, Amazon,
NIKE}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{GameStop, Sony,
Dell}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{{\
~}{GameStop, Best Buy,
Gap}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{62.}{\~}{Which of the following
would }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{
not}}}}\plain\cf3\f4\fs24\b0{{ normally operate as a service
n\cf3\f4\fs24\b0{{\~}{Pet
Groomers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b
0{{\~}
{Grocers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Lawn Care
Company}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Styling
Salon}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{63.}{\~}{Select the type of business that is most likely to obtain large amounts
of resources by issuing
stock.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\c
f3\f4\fs24\b0{{\~}
{Partnership}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\
fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs
24\b0{{\~}
{Corporation}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{Proprietorship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\f
s24\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{None are
is }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{tru
e}}}}\plain\cf3\f4\fs24\b0{{ in regards to a Limited Liability
ne{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain
\cf3\f4\fs24\b0{{\~}{Makes up 10% of business organizations in the United
States.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Combines the attributes of a
partnership and a
corporation.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Provides tax and
liability advantages to the
owners.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0
{{\~}{All are
4\b0{{65.}{\~}{On April 25, Gregg Repair Service extended an offer of $115,000 for
land that had been priced for sale at $140,000. On May 3, Gregg Repair Service
accepted the seller}{{\u8217}}{s counteroffer of $125,000. On June 20, the land was
assessed at a value of $95,000 for property tax purposes. On August 4, Gregg Repair
Service was offered $150,000 for the land by a national retail chain. At what value
should the land be recorded in Gregg Repair Service}{{\u8217}}{s
records?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\li
\cf3\f4\fs24\b0{{\~}
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{$140,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\
b0{{\~}
24\b0{{66.}{\~}{Which of the following groups are considered to
be }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{int
ernal
users}}}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{ }}}\plain\cf3\f4\fs24\b0
{{of accounting
information?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\p
lain\cf3\f4\fs24\b0{{\~}{Employees and
customers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Customers and
vendors}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0
{{\~}{Employees and
managers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Government and
banks}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{67.}{\~}{The following are examples of external users of accounting
information }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs2
4\b1{{except}}}}\plain\cf3\f4\fs24\b0{{:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\
b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f4\fs24\b0{{\~}
{government}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\
{customers}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
{creditors}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
\b0{{\~}{all of the
0{{68.}{\~}{Due to various fraudulent business practices and accounting coverups in
the early 2000}{{\u8217}}{s, Congress enacted the Sarbanes-Oxley Act of 2002.}{\~}{
The Act was responsible for establishing a new oversight board for public
accountants called
\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\
f4\fs24\b0{{\~}{Generally Accepted Accounting Practices for Public Accountants
Board.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{Public Company Accounting Oversight
Board.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Congressional Accounting
Oversight
Board.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{None are
4\b0{{69.}{\~}{Which of the following is
the }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{be
st}}}}\plain\cf3\f4\fs24\b0{{ description of accounting}{{\u8217}}{s role in
n\cf3\f4\fs24\b0{{\~}{Accounting provides stockholders with information regarding
the market value of the company}{{\u8217}}{s
stocks.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0
{{\~}{Accounting provides information to managers
to operate the business and to other users to make decisions regarding the
economic condition of the
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounting helps in
decreasing the credit risk of the
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Accounting is not
responsible for providing any form of information to users.}{\~}{ That is the role
of the Information Systems
Department.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{70.}{\~}{Managerial accountants would be responsible for providing the
following
information:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
lain\cf3\f4\fs24\b0{{\~}{Tax reports to government
agencies.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Profit reports to owners
and
management.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
s24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs2
4\b0{{\~}{Expansion of a product line report to
b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Consumer reports to
customers.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{71.}{\~}{Which of the following
}}}\plain\cf3\f4\fs24\b1{{ }}}\plain\cf3\f4\fs24\b0{{a certification for
accountants?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
lain\cf3\f4\fs24\b0{{\~}
{CIA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{CMA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{CISA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{{
\~}{All are
certifications.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\pl
ain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3
\f4\fs24\b0{{72.}{\~}{Which of the following
is}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{not}
}}}\plain\cf3\f4\fs24\b0{{ a characteristic of a
corporation?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
lain\cf3\f4\fs24\b0{{\~}{Corporations are organized as a separate legal taxable
entity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Ownership is divided into
shares of
stock.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Corporations experience an
ease in obtaining large amounts of resources by issuing
stock.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{A corporation}{{\u8217}}{s resources are limited to their individual owners}
{{\u8217}}
{ resources.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{73.}{\~}{Which of the following
}}}}\plain\cf3\f4\fs24\b0{{ a role of accounting in
n\cf3\f4\fs24\b0{{\~}{To provide reports to users about the economic activities and
conditions of a
business.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\
b0{{\~}{To personally guarantee loans of the
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{To provide information to
other users to determine the economic performance and condition of the
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{To assess the various
informational needs of users and design its accounting system to meet those
needs.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{74.}{\~}{Which of the following are guidelines for behaving
ethically?}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{I.}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Identify the consequences of a
decision and its effect on
others.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
keepn\ql\plain\cf3\f4\fs18\b0{{II.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Consider your obligations and
responsibilities to those affected by the
decision.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
0\keepn\ql\plain\cf3\f4\fs18\b0{{III.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Identify your decision based on
personal standards of honesty and
fairness.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
lvertalt\cellx1408\clvertalt\cellx10331\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\pla
in\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf3\f4\f
s24\b0{{\~}{I and
II.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plai
n\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{II and
III.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{I and
III.}}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{I, II, and
III.}}}\plain\cf3\f4\fs18\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\
{{75.}{\~}{The Sarbanes-Oxley Act of 2002 prohibits employment of auditors by their
clients for what period after their last audit of the
client?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
cf3\f4\fs24\b0{{\~}
{Indefinitely}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1
\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\f
s24\b0{{\~}{One
year}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Two
years}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{There is no such
prohibition.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{76.}{\~}{The initials GAAP stand
for}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}
f4\fs24\b0{{\~}{General
Accounting
Procedures}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Generally Accepted
Plans}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{Generally Accepted Accounting
Principles}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Generally Accepted
Accounting
Practices}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{77.}{\~}{Within the United States, the dominant body in the primary
development of accounting principles is
f4\fs24\b0{{\~}{American Institute of Certified Public Accountants
(AICPA)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{American Accounting
Association
(AAA)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{Financial Accounting Standards Board
(FASB)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Institute of Management
Accountants
(IMA)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{78.}{\~}{The business entity concept means
\f4\fs24\b0{{\~}{the owner is part of the business
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{an entity is organized
according to state or federal
statutes}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{an entity is organized
according to the rules set by the
FASB}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{the entity is an individual economic unit for which data are recorded, analyzed,
and
reported}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{79.}{\~}{For accounting purposes, the business entity should be considered
separate from its owners if the entity
4\fs24\b0{{\~}{a
corporation}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{a
proprietorship}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs
24\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{a
partnership}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
s24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs2
4\b0{{\~}{all of the
0{{80.}{\~}{The objectivity concept requires
\f4\fs24\b0{{\~}{business transactions must be consistent with the objectives of
the
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{the Financial Accounting
Standards Board must be fair and unbiased in its deliberations over new accounting
standards}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{accounting principles must
meet the objectives of the Security and Exchange
Commission}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
\b0{{\~}{amounts recorded in the financial statements must be based on
independently verifiable
evidence}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{81.}{\~}{Denzel Jones owns and operates Crystal Cleaning Company.}{\~}
{ Recently, Denzel withdrew $10,000 from Crystal Cleaning, and he contributed
$6,000, in his name, to Habitat for Humanity.}{\~}{ The contribution of the $6,000
should be recorded on the accounting records of which of the following
entities?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
n\cf3\f4\fs24\b0{{\~}{Crystal Cleaning and Habitat for
Humanity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{Denzel Jones' personal records and Habitat for
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Denzel Jones}{{\u8217}}
{ personal records and Crystal
Cleaning}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Denzel Jones}{{\u8217}}
{ personal records, Crystal Cleaning, and Habitat for
Humanity}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{82.}{\~}{Equipment with an estimated market value of $30,000 is offered for
sale at $45,000. The equipment is acquired for $15,000 in cash and a note payable
of $20,000 due in 30 days. The amount used in the buyer's accounting records to
record this acquisition
4\fs24\b0{{\~}
0{{\~}
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
4\b0{{83.}{\~}{Which one of the following is the authoritative body in the United
States having the primary responsibility for developing accounting
\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\
plain\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}
{FASB}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{IRS}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{SEC}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{AICPA}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{84.}{\~}{Which of the following concepts relates to separating the reporting of
business and personal economic
transactions? }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24
\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}
\plain\cf3\f4\fs24\b0{{\~}{Cost
Concept}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Unit of Measure
Concept}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{Business Entity
Concept}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Objectivity
Concept}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{85.}{\~}{Donner Company is selling a piece of land adjacent to their business
premises.}{\~}{ An appraisal reported the market value of the land to be $220,000.}
{\~}{ The Focus Company initially offered to buy the land for $177,000.}{\~}{ The
companies settled on a purchase price of $212,000.}{\~}{ On the same day, another
piece of land on the same block sold for $232,000.}{\~}{ Under the cost concept, at
what amount should the land be recorded in the accounting records of Focus
\cf3\f4\fs24\b0{{\~}
{$177,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\c
f3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain
\cf3\f4\fs24\b0{{\~}
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
}}}}\plain\cf3\f4\fs24\b0{{ true of accounting
ain\cf3\f4\fs24\b0{{\~}{Financial accountants follow generally accepted accounting
principles
(GAAP).}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Following GAAP allows
accounting information users to compare one company to
another.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b
0{{\~}{A new accounting principle can be adopted with stockholders
approval.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{The Financial Accounting
Standards Board (FASB) has primary responsibility for developing accounting
principles.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{87.}{\~}{Assets
f4\fs24\b0{{\~}{always lower than
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{equal to liabilities less
owner}{{\u8217}}{s
equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{the same as expenses because
they are acquired with
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{financed by the owner and/or
creditors}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{88.}{\~}{Debts owed by a business are referred to
4\fs24\b0{{\~}{accounts
receivables}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\
{expenses}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{owner}{{\u8217}}{s
{\~}
\fs24\b0{{89.}{\~}{The accounting equation may be expressed
4\fs24\b0{{\~}{Assets = Equities -
b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Assets + Liabilities =
Owner's
Equity}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Assets = Revenues less
Liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
4\b0{{\~}{Assets - Liabilities = Owner's
b0{{90.}{\~}{Which of the following
}}}}\plain\cf3\f4\fs24\b0{{ an
asset?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
f3\f4\fs24\b0{{\~}
{Investments}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24
\b0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{Cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{Inventory}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs
\b0{{\~}{Owner}{{\u8217}}{s
b0{{91.}{\~}{The assets and liabilities of the company are $128,000 and $84,000,
respectively.}{\~}{ Owner}{{\u8217}}{s equity should
equal}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf
3\f4\fs24\b0{{\~}
b0{{\~}
4\b0{{92.}{\~}{If total liabilities decreased by $46,000 during a period of time
and owner's equity increased by $60,000 during the same period, the amount and
direction (increase or decrease) of the period's change in total assets
4\fs24\b0{{\~}{$106,000
increase}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{$14,000
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{$14,000
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{$106,000
0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{
\plain\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{make a sales
offer}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{sell goods for
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pla
in\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{receive cash for services to be
rendered
later}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{pay for
supplies}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{94.}{\~}{A business paid $7,000 to a creditor in payment of an amount owed.
The effect of the transaction on the accounting equation was
to}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
4\fs24\b0{{\~}{increase one asset, decrease another
asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0{{
\~}{decrease an asset, decrease a
{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{increase an asset, increase
a
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{increase an asset, increase
owner's
b0{{95.}{\~}{Earning
revenue}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
e{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plai
n\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{increases
assets, increases owner}{{\u8217}}{s
equity.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{increases assets, decreases
owner's
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{increases one asset, decreases
another
asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{decreases assets, increases
liabilities}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{96.}{\~}{The monetary value charged to customers for the performance of
services sold is called
\f4\fs24\b0{{\~}
{asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{net
income}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
{capital}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}
{revenue}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{97.}{\~}{Revenues are reported
\f4\fs24\b0{{\~}{a contract is
signed}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{cash is received from the
customer}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{work is begun on the
job}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\
plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0{{\~
}{work is completed on the
job}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{98.}{\~}{Expenses are recorded
\f4\fs24\b0{{\~}{cash is paid for services
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{a bill is received in
advance of services
rendered}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{assets are used in the process of earning
revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{none of
these}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{99.}{\~}{Goods purchased on account for future use in the business, such as
supplies, are
called}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
f3\f4\fs24\b0{{\~}{prepaid
{revenues}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\
b0{{\~}{prepaid
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
\fs24\b0{{100.}{\~}{The asset created by a business when it makes a sale on account
is
termed}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line
f3\f4\fs24\b0{{\~}{accounts
payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{prepaid
expense}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{unearned
revenue}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs24\b0
{{\~}{accounts
receivable}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{101.}{\~}{The debt created by a business when it makes a purchase on
account is referred to as
an}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}}\
plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3
\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{account
payable}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{account
{asset}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{expense
payable}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{102.}{\~}{If total assets decreased by $88,000 during a period of time and
owner's equity increased by $71,000 during the same period, then the amount and
direction (increase or decrease) of the period's change in total liabilities
4\fs24\b0{{\~}{$17,000
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{$88,000
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{$159,000
0{{\~}{$159,000
4\b0{{103.}{\~}{Owner's
withdrawals}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
ain\cf3\f4\fs24\b0{{\~}{increase
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{decrease
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{increase
cash}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
~}{decrease owner's
b0{{104.}{\~}{How does paying a liability in cash affect the accounting
n\cf3\f4\fs24\b0{{\~}{assets increase; liabilities
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{assets increase; liabilities
0{{\~}{assets decrease; liabilities
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{liabilities decrease;
owner's equity
24\b0{{105.}{\~}{How does receiving a bill to be paid next month for services
received affect the accounting
n\cf3\f4\fs24\b0{{\~}{assets decrease; owner's equity
decreases }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{assets increase;
liabilities
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{liabilities increase;
owner's equity
increases}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{{\~}{liabilities increase; owner's equity
decreases}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{106.}{\~}{How does the purchase of equipment by signing a note affect the
accounting
n\cf3\f4\fs24\b0{{\~}{assets increase; assets
\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{assets increase; liabilities
decrease}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{assets increase; liabilities
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{assets increase; owner's
equity
24\b0{{107.}{\~}{Land, originally purchased for $30,000, is sold for $62,000 in
cash. What is the effect of the sale on the accounting
n\cf3\f4\fs24\b0{{\~}{assets increase $62,000; owner's equity increases
$62,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs24\b0
{{\~}{assets increase $32,000; owner's equity increases
$32,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{assets increase $62,000;
liabilities decrease $30,000; owner's equity increases
$32,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{assets increase $30,000; no
change for liabilities; owner's equity increases
$62,000}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{108.}{\~}{Allen Marks is the sole owner and operator of Great Marks Company.}
{\~}{ As of the end of its accounting period, December 31, 2013, Great Marks
Company has assets of $940,000 and liabilities of $300,000.}{\~}{ During 2014,
Allen Marks invested an additional $73,000 and withdrew $33,000 from the business.
What is the amount of net income during 2014, assuming that as of December 31,
2014, assets were $995,000, and liabilities were
$270,000?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ine{}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\pl
ain\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{$
45,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{$
50,000}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}
24\b0{{109.}{\~}{Transactions affecting owner's equity
include}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\lin
cf3\f4\fs24\b0{{\~}{owner's investments and payment of
liabilities}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
s24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs2
4\b0{{\~}{owner's investments and owner's withdrawals, revenues, and
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{owner's investments,
revenues, expenses, and collection of accounts
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{owner's withdrawals,
revenues, expenses, and purchase of supplies on
account}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{110.}{\~}{Clifford Moore is starting his computer programming business and has
deposited in initial investment of $15,000 into the business cash account.}{\~}
{ Identify how the accounting equation will be
affected.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
n\cf3\f4\fs24\b0{{\~}{Increase Assets (Cash) and increase Liabilities (Accounts
Payable)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{Increase Assets (Cash) and increase Owner}{{\u8217}}{s Equity (Clifford
Moore,
Capital)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Increase Assets (Accounts
Receivable) and decrease Liabilities (Accounts
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Increase Assets (Cash) and
increase Assets (Accounts
Receivable)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{111.}{\~}{Gomez Service Company paid their first installment on their
Notes Payable in the amount of $2,000.}{\~}{ How will this transaction affect the
accounting
n\cf3\f4\fs24\b0{{\~}{Increase Liabilities (Notes Payable) and decrease Assets
(Cash)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Decrease Assets (Cash) and
decrease Owner}{{\u8217}}{s equity (Note Payable
Expense)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Decrease Assets (Cash) and
decrease Assets (Notes
Receivable)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\f
4\b0{{\~}{Decrease Assets (Cash) and decrease Liabilities (Notes
Payable)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{112.}{\~}{Ramon Ramos has withdrawn $750 from Ramos Repair Company}{{\u8217}}
{s cash account to deposit in his personal account.}{\~}{ How does this transaction
affect Ramos Repair Company}{{\u8217}}{s accounting
n\cf3\f4\fs24\b0{{\~}{Increase Assets (Accounts Receivable) and decrease Assets
(Cash)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{Decrease Assets (Cash) and decrease Owner}{{\u8217}}{s Equity (Owner}
{{\u8217}}{s
Withdrawal)}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\
b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Decrease Assets (Cash)
and decrease Liabilities (Accounts
\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{Increase Assets (Cash) and
decrease Owner}{{\u8217}}{s Equity (Owner}{{\u8217}}{s
Withdrawal)}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{113.}{\~}{Which of the following
lain\cf3\f4\fs24\b0{{\~}{Erin deposits $15,000 in a bank account in the name of
Erin}{{\u8217}}{s Lawn
Service. }}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Erin provided services to
customers earning fees of
$600.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Erin purchased hedge trimmers
for her lawn service agreeing to pay the supplier next
month.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b
{\~}{Erin pays her monthly personal credit card
bill.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{114.}{\~}{The financial statement that presents a summary of the revenues and
expenses of a business for a specific period of
time, such as a month or year, is called
\f4\fs24\b0{{\~}{prior period
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{statement of owner's
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{
{\~}{income
{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{balance
0{{115.}{\~}{Which of the following financial statements reports information as of
a specific
date?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{
}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\f4\fs24\b0{{A.}}}\plain\cf
3\f4\fs24\b0{{\~}{income
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{statement of cash
flows}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{balance
0{{116.}{\~}{Four financial statements are usually prepared for a business.}{\~}
{ The statement of cash flows is usually prepared last.}{\~}{ The statement of
owner's equity (OE), the balance sheet (B), and the income statement (I) are
prepared in a certain order to obtain information needed for the next statement.}
{\~}{ In what order are these three statements
prepared?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ain\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{I,OE,
B}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\
cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{B, I,
OE}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain
\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{OE, I,
B}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\
cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{B,OE,
I}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs1
8\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1
17.}{\~}{Liabilities are reported on
f4\fs24\b0{{\~}{income
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{statement of cash
flows}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0
\~}{balance
0{{118.}{\~}{Cash investments made by the owner to the business are reported on the
statement of cash flows in
\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf
3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{financing activities
section}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{investing activities
plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{operating activities
plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{supplemental
statement}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf
24\b0{{119.}{\~}{The year-end balance of the owner's capital account appears
4\fs24\b0{{\~}{both the statement of owner's equity and the income
{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{only the statement of
owner's
0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{
{\~}{both the statement of owner's equity and the balance
sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{both the statement of owner's
equity and the statement of cash
flows}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{120.}{\~}{A financial statement user would determine if a company was profitable
or not during a specific period of time by
reviewing}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
ain\cf3\f4\ul1\fs24\b1{{A.}}}}\plain\cf3\f4\fs24\b0{{\~}{the Income
Statement.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{the Balance
Sheet.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{the Statement of Cash
Flows.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{cannot be
determined.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\
fs24\b0{{121.}{\~}{If the owner wanted to know how money flowed into and out of the
company, what financial statement would she
use?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
\f4\fs24\b0{{\~}{Income
Statement}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs2
b0{{\~}{Statement of Cash
Flows}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{Balance
Sheet}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{None are
4\b0{{122.}{\~}{The asset section of the Balance Sheet normally presents assets
4\fs24\b0{{\~}{alphabetical
order.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{order of largest to smallest
dollar
amounts.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24
0{{\~}{in the order what will be converted into
cash.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{any
order.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{123.}{\~}{Countries outside the U.S. use financial accounting standards issued
by
the:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\line{}
\f4\fs24\b0{{\~}
{AICPA}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\p
lain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}
{SEC}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{
\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{C.}}}}\plain\cf3\f4\fs24\b0{{\
~}
{IASB}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\pl
ain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}
{FASB}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{124.}{\~}{All of the following statements regarding the ratio of liabilities to
owner}{{\u8217}}{s equity are
true }}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{e
xcept}}}}\plain\cf3\f4\fs24\b0{{:}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}
}\
plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\cf4\
f4\fs24\b0{{A.}}}\plain\cf3\f4\fs24\b0{{\~}{A ratio of 1 indicates that liabilities
equal owner}{{\u8217}}{s
equity.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\
plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{Corporations can use this
ratio but substitute total stockholders}{{\u8217}}{ equity for total owner}
{{\u8217}}{s
equity.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\fs24\
{{\~}{The higher this ratio is, the better able a business is to withstand poor
creditors.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{The lower this ratio is,
the better able a business is to withstand poor business conditions and pay
creditors.}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\c
s24\b0{{125.}{\~}{The unit of measure
concept: }}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0\l
n\cf3\f4\fs24\b0{{\~}{is only used in the financial statements of manufacturing
companies.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b
0{\plain\cf4\f4\fs24\b0{{B.}}}\plain\cf3\f4\fs24\b0{{\~}{is not important when
applying the cost
concept.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{
\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{requires that different
units be used for assets and
liabilities.}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\
fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{D.}}}}\plain\cf3\f4\fs
24\b0{{\~}{requires that economic data be reported in yen in Japan or dollars in
the
U.S. }}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4
0{{126.}{\~}{Given the following
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ }}}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{Dec.
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $128,250}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{ $120,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Total owner}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 95,000}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\b0{{Compute the ratio of liabilities to owner}{{\u8217}}{s equity for each year.}
{\~}{ Round to two decimal
places.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\
~}}\plain\cf3\f4\fs24\b0\line{}}\plain\cf3\f4\fs24\b0{\plain\cf4\f4\fs24\b0{\plain\
cf4\f4\fs24\b0{{A.}}}\plain\cf3\f4\fs24\b0{{\~}{1.50 and 1.07,
respectively}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\ul1\
fs24\b0{\plain\cf3\f4\ul1\fs24\b1{\plain\cf3\f4\ul1\fs24\b1{{B.}}}}\plain\cf3\f4\fs
24\b0{{\~}{1.35 and 1.50,
\b0{\plain\cf4\f4\fs24\b0{{C.}}}\plain\cf3\f4\fs24\b0{{\~}{1.07 and 1.19,
\b0{\plain\cf4\f4\fs24\b0{{D.}}}\plain\cf3\f4\fs24\b0{{\~}{1.19 and 1.35,
respectively}}}\plain\cf3\f4\fs24\b0{}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain
\fs24\b0{{127.}{\~}{Discuss internal and external users of accounting information.}
{\~}{ What areas of accounting provide them with information?}{\~}{ Give an example
of the type of report each type of user might
use.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par
\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Internal users
of accounting information include managers and employees. The area of accounting
that provides internal users with information is called managerial accounting or
management accounting. An example of a report that might be used internally is a
customer profitability
report.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24
\b0{{External users of accounting information include customers, creditors, banks,
and the government. These users are not directly involved in managing or operating
the business. The area of accounting that provides external users with information
is called financial accounting. General-purpose financial statements are one type
of financial accounting report that is distributed to external
users.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{128.}{\~}{Companies
like Enron, WorldCom, and Tyco International, Ltd. have been caught in the midst of
ethical lapses that led to fines, firings, and criminal and/or civil prosecution.
List and briefly describe three factors that are responsible for what went wrong in
these
companies.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{
}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{The three
factors are: (1) individual character, (2) firm culture, and (3) laws and
enforcement.}{\~}{ Honesty, integrity, and fairness in the face of pressure to hide
the truth are important characteristics of an ethical business person.}{\~}{ The
behavior and attitude of senior management sets the firm}{{\u8217}}{s culture.}{\~}
{ In firms like Enron, senior managers created a culture of greed and indifference
to the truth.}{\~}{ That culture flowed down to lower-level managers, who took
shortcuts and lied to cover financial frauds.}{\~}{ The lack of laws and
enforcement has been blamed as a contributing factor to financial reporting
abuses.}{\~}{ As a result, new laws such as the Sabanes-Oxley Act of 2002 (SOX)
established a new oversight body for the accounting profession, known as the Public
Company Accounting Oversight Board (PCAOB), which enhanced corporate
accountability, financial disclosures, and
independence.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\p
ar\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{129.}{\~}
{List the five steps in the process by which accounting provides information to
users.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1. Identify
users.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{2. Assess users}
{{\u8217}}{ information
needs.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{3. Design the accounting
information system to meet users}{{\u8217}}
{ needs.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{4. Record economic
data about business activities and
events.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{5. Prepare accounting
reports for
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{130.}{\~}{What is
the major difference between the objective of financial accounting and the
objective of managerial
{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{The
objective of financial accounting is to provide information for the decision-making
needs of}{\~}{ external users. The objective of managerial accounting is to provide
information for internal
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{131.}{\~}{Give the
major disadvantage of disregarding the cost concept and constantly revaluing assets
based on appraisals and
opinions.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Accounting
reports would become unstable and
unreliable.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par
\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{132.}{\~}{On
May 7, Carpet Barn Company offered to pay $83,000 for land that had a selling price
of $105,000.}{\~}{ On May 15, Carpet Barn accepted a counteroffer of $95,000.}{\~}{
On June 5, the land was assessed at a value of $115,000 for property tax purposes.}
{\~}{ On December 10, Carpet Barn Company was offered $135,000 for the land by
another company.}{\~}{ At what value should the land be recorded in Carpet Barn
Company}{{\u8217}}{s
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{$95,000}}\p
ar\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa3
19\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{133.}{\~}{Donner Company is
selling a piece of land adjacent to their business.}{\~}{ An appraisal reported the
market value of the land to be $120,000.}{\~}{ The Focus Company
initially offered to buy the land for $107,000.}{\~}{ The companies settled on a
purchase price of $115,000.}{\~}{ On the same day, another piece of land on the
same block sold for $122,000.}{\~}{ Under the cost concept, what is the amount that
will be used to record this transaction in the accounting
\f4\fs24\b0{{$115,000}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0
{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{134.}
{\~}{Explain the meaning of the business entity
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{The
business entity concept limits the economic data in an accounting system
to}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{data related directly to the
activities of the business. In other words, the
business}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{is viewed as an entity
separate from its owners, creditors, or other
businesses}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\
{Darnell Company purchased $88,000 of computer equipment from Joseph Company.}{\~}{
Darnell Company paid for the equipment using cash that had been obtained from the
initial investment by Donnie
Darnell. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{Which entity or entities (Darnell Company, Joseph Company, Donnie Darnell)
should record the transaction involving the computer equipment on their accounting
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Darnell
Company and Joseph
Company}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{136.}{\~}{Explain
the meaning
of:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{
{(a) the}{\~}{ objectivity concept
and}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) the unit of measure
concept}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(a)}{\~}
{ The objectivity concept requires that the amounts recorded in the accounting
records}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{be based on objective
evidence. In exchanges between a buyer and a seller, both}{\~}{ try to get the best
price. Only the final agreed-upon amount is objective enough to be recorded in the
accounting
records.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{.}}\plain\cf3\f4\fs24\
b0\line{}\plain\cf3\f4\fs24\b0{{(b) The unit of measure concept requires that
economic data be recorded in dollars. Money is a common unit of measurement for
reporting financial data and
reports.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{137.}{\~}{Doug
Miller is the owner and operator of Miller}{{\u8217}}{s Arcade.}{\~}{ At the end of
its accounting period, December 31, 2010, Miller}{{\u8217}}{s Arcade has assets of
$450,000 and liabilities of $125,000.}{\~}{ Using the accounting equation,
determine the following
amounts:}}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
18\b0{{a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Owner}{{\u8217}}{s Equity as of December 31,
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b)}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner}
{{\u8217}}{s Equity as of December 31, 2011, assuming that assets increased by
$65,000 and liabilities increased by $35,000 during
319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
ertalt\cellx9975\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\
b0{{a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{$450,000 = $125,000
+ }}\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{$325,000}}}\intbl\itap1\cell\trowd
\trpaddt0\trpaddft3\clvertalt\cellx634\clvertalt\cellx9975\row\trowd\trql\trleft0\t
dft3\clvertalt\cellx634\clvertalt\cellx9975\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{b)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{($450,000 + $65,000) = ($125,000 + $35,000)
+ }}\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{$355,000}}}\intbl\itap1\cell\trowd
\trpaddt0\trpaddft3\clvertalt\cellx634\clvertalt\cellx9975\row\trowd\trql\trleft0\t
dft3\clvertalt\cellx634\clvertalt\cellx9975\pard\plain\intbl\itap1\cell\pard\plain\
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx634\clvertalt\cellx9975\ro
w\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa31
9\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{138.}{\~}{Determine the missing
amount }{{\u8220}}{X}{{\u8221}}{ for each of the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbr
drt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrc
f0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw2
0\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpad
dfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw
rs\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Assets}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b0{{Liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner}{{\u8217}}{s
l\plain\cf3\f4\fs18\b0{{a.}{\~}
eepn\ql\plain\cf3\f4\fs18\b0{{X}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20
\trrh0\trkeep\trpaddb0\trpaddfb3\t
\brdrw20\brdrcf0\cellx10296\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{b.}{\~}
{ X}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
f0\cellx10296\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\br
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}{\~}
cf3\f4\fs18\b0{{X}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
0\cellx10296\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
l\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3500\clvertalt\clbrdrl\brdrs\brdrw20\b
lain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb31
9\keep\keepn\ql\plain\cf3\f4\fs24\b0{{a.}{\~}{ $78,500 - 37,600 =
$40,900}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.}{\~}{ $53,280 +
145,000 = $198,280}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c.}{\~}
{ $49,500 - 34,000 =
$15,500}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{139.}{\~}{Krammer
Company has liabilities equal to one fourth of the total assets.}{\~}{ Krammer}
{{\u8217}}{s owner}{{\u8217}}{s equity is}{\~}{ $45,000.}{\~}{ Using the accounting
equation, what is the amount of liabilities for
Krammer?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Assets =
Liabilities + Owner}{{\u8217}}{s
Equity}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{4x = x +
$45,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{3x =
$45,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{x = $15,000 in
liabilities}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par
\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{140.}{\~}
{Daniels Company is owned and operated by Thomas Daniels.}{\~}{ The following
selected transactions were completed by Daniels Company during
May:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\tr
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Received cash from owner as additional
investment
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx634\clvertalt\cellx9975\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2.}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid
creditors on account
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Billed
customers for services on account,
cash from customers on accounts
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid cash
to owner for personal use,
the utility bill $160, to be paid next
month.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lx9975\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\tr
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx634\clvertalt\cellx9975\pard\pla
cellx634\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3
\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx653\pard\plain\intbl\itap
1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Indicate
the effect of each transaction on the accounting
equation:}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
trpaddt0\trpaddft3\clvertalt\cellx653\clvertalt\cellx9985\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1)}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{By Account type - (A)assets,
(L)liabilities, (O)owner}{{\u8217}}{s (E)equity, (R)revenue, and
(E)expense}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
\cellx9985\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx653\clvertalt\cellx9985\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Name of
Account for the
entry}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{3)}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The amount by
of the
transaction.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4)}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Indica
te the direction of change in the account that is
affected.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx653\clvertalt\cellx9985\clver
talt\cellx10332\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\
vertalt\cellx10332\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b
0{{Note:}{\~}{ Each transaction has two
entries. }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trbrd
rw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1576\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Entry}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Entry}}\intbl\itap1\cell\trowd\
lx539\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1576\row\trowd\trql\trbrd
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Acct
f4\fs18\b0{{Name of
f4\fs18\b0{{Amount}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{(3) }}\intbl\itap1\cell\pard\plain\intb
f4\fs18\b0{{Name of
f4\fs18\b0{{Amount }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain
\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{(3)}}\intbl\itap1\cell\pard\plain\intb
cf0\cellx539\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10330\row\trowd\trql\trbrdrt\brdrs
\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdr
r\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0
ddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf
0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx539\clvertalt\cl
\brdrcf0\cellx3012\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\br
rdrcf0\clbrdrl\brdr
cellx10330\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1}
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx539\clver
l\plain\cf3\f4\fs18\b0{{2}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\i
f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\
rdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx539\clvertalt\clbrdrb\brdrs\brdrw20\brdrc
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t\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx9048\clvertalt\c
lbrdrl\brdrs\brdrw20\brdrcf0\cellx10750\pard\plain\intbl\itap1\cell\pard\plain\intb
l\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\int
bl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\in
tbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
rr\brdrs\brdrw20\brdrcf0\cellx664\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
rdrw20\brdrcf0\cellx4109\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdr
w20\brdrcf0\cellx5811\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20
\brdrcf0\cellx6682\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\br
drcf0\cellx7865\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrc
f0\cellx9048\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10750\row\pard\plain\sa0\
eep\keepn\ql\plain\cf3\f4\fs24\b0{{141.}{\~}{Use the accounting equation to answer
each of the independent questions
below:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{a.}{\~}{ At the beginning of the year Norton Company assets were $75,000 and
its owner}{{\u8217}}{s equity was $38,000.}{\~}{ During the year, assets increased
by $18,000 and liabilities increased by $4,000.}{\~}{ What was the owner}{{\u8217}}
{s equity at the end of the
year?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b
0{{b.}{\~}{ At the beginning of the year Turpin Industries had liabilities of
$44,000 and owner}{{\u8217}}{s equity of $66,000.}{\~}{ If assets increased by
$10,000 and liabilities decreased by $5,000, what was the owner}{{\u8217}}{s equity
at the end of the
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{a.}{\~}
{ $75,000 - $38,000 = $37,000 beginning of year
liabilities}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{($75,000 + 18,000)
- ($37,000 + 4,000) = $52,000 end of year owner}{{\u8217}}{s
equity}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{b.}{\~}{ $44,000 + $66,000 = $110,000 beginning of year
assets}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{($110,000 + 10,000) -
($44,000 - 5,000) = $81,000 end of year owner}{{\u8217}}{s
equity}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard
\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{142.}{\~}{Collins
Landscape Company purchased various landscaping supplies on account to be used for
landscape designs for their customers.}{\~}{ How will this business transaction
affect the accounting
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Increase
Assets (Supplies) and increase Liabilities (Accounts
Payable)}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{143.}{\~}{Bob
Johnson is the sole owner of Johnson}{{\u8217}}{s Carpet Cleaning Service.}{\~}
{ Bob purchased a personal automobile for $10,000 cash plus he took out a loan for
$20,000 in his name. Describe how this transaction is related to the business
entity
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Under the
business entity concept, economic data is limited to the direct activities of the
business.}{\~}{ The business is viewed as separate from its owner.}{\~}{ Therefore,
when Bob buys a personal automobile, it is not listed on the books of Johnson}
{{\u8217}}{s Carpet Cleaning, unless Bob invests it in the business.}{\~}{ In this
case, the loan is a personal debt and not a liability of the company and the cash
is from Bob}{{\u8217}}{s personal account and not the company}{{\u8217}}{s
account.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{144.}{\~}{Shiny
Kar Company had the following transactions.}{\~}{ For each transaction, show the
effect on the accounting equation by putting the amount and direction (plus, minus,
or NC for no change) in each box of the table
below.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdrt\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\p
eepn\ql\plain\cf3\f4\fs18\b0{{Assets}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Liabilities}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner}{{\u8217}}{s
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}{\~}{ Shiny Kar withdrew
$500 cash for
food.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
eepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw2
cellx10338\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{b.
}{\~}{ Shiny Kar Company sold 2 cars for a total of $55,000 on
{c.}{\~}{ The cost of the cars sold in (b) above was
$40,000.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
{d.}{\~}{ Shiny Kar received $35,000 payment for a car previously sold on
ddr0
\
trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdrb\brdrs
llx10338\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e.}
{\~}{ Shiny Kar paid $450 for
advertising. }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
f0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\
brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10338\row\
brdrcf0\cellx10338\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{f. Shiny Kar purchased $150 of cleaning supplies on
\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\clb
rdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdr
l\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8568\clvertalt\clbrdrl\b
rdrs\brdrw20\brdrcf0\cellx10338\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trr
t3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx5739\clvertalt\clbrdrl\brdrs\brdrw2
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx7001\clvertalt\clbrdrl\brdrs\brdrw20\b
lain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb31
9\keep\keepn\ql\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Assets}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Liabilities}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner}{{\u8217}}{s
lbrdrt\brdrs\brdrw20\brdrcf0\cellx753\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrd
f0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\row\trowd\trql\trbrdrt\brdrs\brdrw20\br
drcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brd
rw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\tr
ft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx753\clvertalt\clbrdrb\brdrs
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{a.}}\intbl\itap1\cell\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-
$500}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{NC}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{-
$500}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdr
\brdrs\brdrw20\brdrcf0\clbrdrt\b
rdrs\brdrw20\brdrcf0\cellx10337\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{b.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{ +
$55,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{NC}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{+
$55,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{c.}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-
$40,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{NC}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{-
$40,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
drr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{d.}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{NC}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{NC}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{NC
}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\
rdrt\brdrs\brdrw20\brdrcf0\cellx10337\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
rdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx753\clvertalt\clbrdrb\brdrs\brdrw
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{e.}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{-
$450}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{NC}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{-
$450}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdr
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10337\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{f.}}\intbl\itap1\cell\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$150}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$150}}\intbl
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{N
C}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20
brdrt\brdrs\brdrw20\brdrcf0\cellx10337\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
rr\brdrs\brdrw20\brdrcf0\cellx753\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\b
s\brdrw20\brdrcf0\cellx7753\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10337\pard
\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl
\
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\b
rdrs\brdrw20\brdrcf0\cellx753\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs
\brdrw20\brdrcf0\cellx5169\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\br
drw20\brdrcf0\cellx7753\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10337\row\pard
\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\
ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{145.}{\~}{Ramierez Company received
their first electric bill in the amount of $60 which will be paid next month.}{\~}{
How will this transaction affect the accounting
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Increase
Liabilities (Accounts Payable) and decrease Owner}{{\u8217}}{s Equity (Utilities
Expense)}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{146.}{\~}{Jonathan
Martin is the owner and operator of Martin Consultants.}{\~}{ At December 31, 2011,
Martin Consultants has assets of $430,000 and liabilities of $205,000.}{\~}{ Using
the accounting equation and considering each case independently, determine the
following:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\f
s24\b0{{a. Jonathan Martin, capital, as of December 31,
2011.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b. Jonathan Martin,
capital, as of December 31, 2012, assuming that assets increased by $12,000 and
liabilities increased by $15,000 in
2012.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c. Jonathan Martin,
capital, as of December 31, 2012, assuming that assets decreased by $8,000 and
liabilities increased by $14,000 during
{ $430,000 - 205,000 =
$225,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.}{\~}{ ($430,000 +
12,000) - ($205,000 + 15,000) =
$222,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c.}{\~}{ ($430,000 -
$8,000) - ($205,000 + 14,000) =
$203,000}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{147.}{\~}{Simpson
Auto Body Repair purchased $20,000 of Machinery.}{\~}{ The company paid $8,000 in
cash at the time of the purchase and signed a promissory note for the remainder to
be paid in four monthly installments.}{\~}
(a) How will the purchase affect the accounting
equation?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) How will the
payment of the first monthly installment affect the accounting
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(a)}{\~}
{ Increase Total Assets by a net amount of $12,000 (increase Machinery $20,000 and}
{\~}{\~}{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{
decrease Cash $8,000) and increase Liabilities by $12,000 (Notes Payable $12,000)}
{\~}{\~}{\~}{\~}{\~}
(b)}{\~}{ Decrease Assets by $3,000 (decrease Cash) and decrease Liabilities by
$3,000 }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}
{ (decrease Notes
Payable)}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{148.}{\~}{On July
1 of the current year, the assets and liabilities of John Wong, DVM, are as
follows: Cash, $27,000; Accounts Receivable, $12,300; Supplies, $3,100; Land,
$35,000; Accounts Payable, $13,900. What is the amount of owner's equity (John
Wong}{{\u8217}}{s capital) as of July 1 of the current
\fs24\b0{{$63,500}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\c
f3\f4\fs24\b0{{($27,000 Cash + $12,300 Accounts Receivable + $3,100 Supplies +
$35,000 Land)}{\~}{ - $13,900 Accounts Payable =
$63,500}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{149.}{\~}{Indicate
how the following transactions affect the accounting
equation:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs
24\b0{{(a) The purchase of supplies on
account.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) The purchase of
supplies for cash.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(c) A
withdraw by the owner to pay personal
expenses.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(d) Revenues received
in cash.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(e) Revenues received
on
account.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(a) Assets
increase; liabilities
increase}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) No
effect}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(c) Assets decrease;
owner's equity decreases}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(d)
Assets increase; owner}{{\u8217}}{s equity
increases}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(e) Assets increase;
owner}{{\u8217}}{s equity
increases}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{150.}{\~}{Discuss
the characteristics of a LLC (Limited liability
company).}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{A Limited
liability company (LLC) combines the attributes of a partnership and a corporation.
It is often used as an alternative to a partnership because it has tax and legal
liability advantages for
owners.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{151.}{\~}{Kim Hsu
is the owner of Hsu}{{\u8217}}{s Financial Services.}{\~}{ At the end of its
accounting period, December 31, 2011, Hsu}{{\u8217}}{s has assets of $575,000 and
owner}{{\u8217}}{s equity of $335,000.}{\~}{ Using the accounting equation and
considering each case independently, determine the following
amounts.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{a.}{\~}{ Hsu}{{\u8217}}{s liabilities as of December 31,
2011. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.}{\~}{ Hsu}{{\u8217}}
{s liabilities as of December 31, 2012, assuming that assets increased by $56,000
and owner}{{\u8217}}{s equity decreased by
$32,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c.}{\~}{ Net income or
net loss during 2012, assuming that as of December 31, 2012, assets were $592,000,
liabilities were $450,000, and there were no additional investments or
withdrawals.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b
0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{a.}{\~}
{ $575,000 - 335,000 =
$240,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.}{\~}{ ($575,000 +
56,000) - ($335,000 - 32,000) =
$328,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{c.}{\~}{ $592,000 -
450,000 = $142,000 }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}
{\~}{ $335,000 - 142,000 = $193,000 net
loss}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\p
lain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{152.}{\~}{a.}{\~}{ A
vacant lot acquired for $83,000 cash is sold for $127,000 in cash.}{\~}{ What is
the effect of the sale on the total amount of the seller}{{\u8217}}{s (1) assets,
(2) liabilities, and (3) owner}{{\u8217}}{s
equity?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24
\b0{{b.}{\~}{ Assume that the seller owes $52,000 on a loan for the land.}{\~}
{ After receiving the $127,000 cash in (a), the seller pays the $52,000 owed.}{\~}{
What is the effect of the payment on the total amount of the seller}{{\u8217}}{s
(1) assets, (2) liabilities, and (3) owner}{{\u8217}}{s
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{a.}{\~}
{ }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(1) Total assets increased
$44,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(2) No change in
liabilities.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(3) Owner}
{{\u8217}}{s equity increased
$44,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{b.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(1) Total assets
decreased $52,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(2) Total
liabilities decreased
$52,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(3) No change in
owner}{{\u8217}}{s
equity.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\par
d\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{153.}{\~}{Indicate
whether each of the following represents an asset, liability, or owner's
equity:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
b0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{accounts
payable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{wages
expense}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{capital}
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{accounts
receivable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{withd
rawal}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{land}}\int
\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\row\
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\plain\intbl\i
b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0
\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
x10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\
b0{{liability}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ow
ner}{{\u8217}}{s
equity}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{owner}
{{\u8217}}{s
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\i
ntbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\ro
paddfr3\trpaddt0\trpaddft3\clvertalt\cellx755\clvertalt\cellx10291\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{owner}{{\u8217}}{s
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{asset}}\i
\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{
\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{154.}
{\~}{The Austin Land Company sold land for $85,000 in cash.}{\~}{ The land was
originally purchased for $65,000.}{\~}{ At the time of the sale, $40,000 was still
owed to Regions Bank. After the sale, The Austin Land Company paid off the loan.
Explain the effect of the sale and the payoff of the loan on the accounting
equation.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Total
assets decrease $20,000 (Cash increases by $45,000;}{\~}{ Land decreases by
$65,000)}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Total liabilities
decrease $40,000 (Note payoff to
Regions)}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Owner's equity
increases $20,000 (Sales price - cost of the
land)}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\
plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{155.}{\~}{Given the
following:}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Beginning capital}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ $ 58,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Ending capital}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Owner's withdrawals}{\~}{\~}{ $}{\~}
4\b0{{Calculate net income or net
loss.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trbrdrt\brdrs\brdrw20
brdrt\brdrs\brdrw20\brdrcf0\cellx5310\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{Ending capital}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{$30,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdr
b\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0
\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\t
rw20\brdrcf0\cellx5310\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
rdrw20\brdrcf0\trbrdrl\brdrs\brdrw
20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdr
s\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpadd
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brd
\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5310\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Beginning capital}{\~}
ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ 58,000}}}\intbl\itap1\cell\trowd\trql\trbrd
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5310\row\trowd\trql\trbrdrt\brdrs\
brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr
\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\
dt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5310\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{Decrease in
3\f4\fs18\b0{{$28,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
\brdrcf0\cellx5310\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs1
8\b0{{Less: Owner's withdrawals}{\~}
ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
{ 25,000}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
lx5310\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
loss}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{$}{\~}
{ 3,000}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
cf0\cellx5310\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\
cellx3753\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx5310\pard\plain\intbl\itap1\
cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\b
rdrw20\brdrcf0\cellx3753\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx5310\row\pard
\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\
ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{156.}{\~}{The accountant for Franklin
Company prepared the following list of account balances from the company}{{\u8217}}
{s records for the year ended December 31,
counts
\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{Interest
ries & Wages
Taxes
tes
\plain\cf3\f4\fs18\b0{{ Determine the total assets at the end of 2011 for Franklin
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trke
\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{$110,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh
l\plain\cf3\f4\fs18\b0{{($30,000 Cash + $14,000 Accounts Receivable + $64,000
Equipment + 2,000 Prepaid Rent =
$110,000)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx988\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trle
trpaddft3\clvertalt\cellx988\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
alt\cellx10607\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\t
t0\trpaddft3\clvertalt\cellx988\clvertalt\cellx10607\row\pard\plain\sa0\li0\ri0\sb0
l\plain\cf3\f4\fs24\b0{{157.}{\~}{The accountant for Franklin Company prepared the
following list of account balances from the company}{{\u8217}}{s records for the
year ended December 31,
8\pard\plain\intbl\itap1
\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
ries & Wages
Taxes
tes
\plain\cf3\f4\fs18\b0{{ Determine the total liabilities at the end of 2011 for
Franklin
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trke
\keepn\ql\plain\cf3\f4\fs18\b0{{$37,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx988\clvertalt\cellx10607\row\trowd\trql\trleft0\trrh0\trkeep\trpadd
b0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cel
lx988\clvertalt\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
\plain\cf3\f4\fs18\b0{{($12,000 Accounts Payable + $5,000 Income Taxes Payable +
$20,000 Notes Payable =
$37,000)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
alt\cellx988\clvertalt\cellx10607\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{158.}{\~}{The accountant for Franklin Company prepared the following list of
account balances from the company}{{\u8217}}{s records for the year ended December
31,
081\clvertalt\cellx5490\clvertalt\cellx5846\clvertalt
\
cellx9149\clvertalt\cellx10768\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\ql\plain\cf3\f4\fs18\b0{{Accounts
ries & Wages
Taxes
tes
\plain\cf3\f4\fs18\b0{{ Based on this information, is Franklin Company profitable?}
{\~}{ Explain your
answer.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{($165,000
Fees Earned + $3,000 Interest Income) -}{\~}{ ($40,000 Salaries & Wages Expense +
$44,000 Selling Expenses}{\~}{ + $18,000 Income Taxes Expense + $20,000 Rent
Expense) = $46,000 Net
Income}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\
b0{{Franklin Company had net income for the period of $46,000.}{\~}{ Since revenues
exceeded expenses for the period, the company would be considered
profitable.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par
\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{159.}{\~}{The
assets and liabilities of Amos Moving Services at March 31, 2014, the end of the
current year, and its revenue and expenses for the year are listed below.}{\~}{ The
capital of the owner was $180,000 at April 1, 2013, the beginning of the current
year.}{\~}{ Mr. Amos invested an additional $25,000 in the business during the
\fs18\b0{{Accounts
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$47,000}}\intbl\i
8\b0{{Drawing}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{$16,570}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clverta
lt\cellx5366\clvertalt\cellx8968\clvertalt\cellx10097\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Building}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$157,630}}\intbl\itap1\cell
8\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
cellx4732\clvertalt\cellx5366\clvertalt\cellx8968\clvertalt\cellx10097\row\trowd\tr
ql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\tr
paddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt\cellx5366\clvert
p1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\it
ap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpa
ddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3108\clvertalt\cellx4732\clvertalt
\cellx5366\clvertalt\cellx8968\clvertalt\cellx10097\row\pard\plain\sa0\li0\ri0\sb0\
keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\
fs18\b0{{ Prepare an income statement for the current year ended March 31,
r\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}\par\trowd\trql\tr
0\trpaddft3\clvertalt\cellx2082\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{Amos Moving
Services}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
Statement}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Year Ended
March 31,
2014}}\plain\cf3\f4\fs18\b0{}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
talt\cellx7778\clvertalt\cellx10371\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Fees
keepn\ql\plain\cf3\f4\fs18\b0{{$73,450}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
{ Expenses:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
lain\cf3\f4\fs18\b0{{Wages
pn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx2082\clvertalt\cellx5185\clvertalt\cellx7778\clvertalt\cellx10371\row\trowd\
trpaddt0\trpaddft3\clvertalt\cellx2082\clvertalt\cellx5185\clvertalt\cellx7778\clve
rtalt\cellx10371\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\
b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Office
alt\cellx10371\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
4\fs18\b0{{Miscellaneous
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{ 1,030}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
lvertalt\cellx5185\clvertalt\cellx7778\clvertalt\cellx10371\row\trowd\trql\trleft0\
371\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intb
Total
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ 25,820}}}\intbl\itap1\cell\t
dfr3\trpaddt0\trpaddft3\clvertalt\cellx2082\clvertalt\cellx5185\clvertalt\cellx7778
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$47,630}}}\intbl\itap1
talt\cellx5185\clvertalt\cellx7778\clvertalt\cellx10371\pard\plain\intbl\itap1\cell
l\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\tr
778\clvertalt\cellx10371\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b
0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{160.
}{\~}{The assets and liabilities of Amos Moving Services at March 31, 2014, the end
of the current year, and its revenue and expenses for the year are listed below.}
{\~}{ The capital of the owner was $180,000 at April 1, 2013, the beginning of the
current year.}{\~}{ Mr. Amos invested an additional $25,000 in the business during
the
\fs18\b0{{Accounts
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ }}\plain\c
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a statement of owner}{{\u8217}}
{s equity for the current year ended March 31,
Services}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner}
{{\u8217}}{s Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the
Year Ended March 31,
talt\cellx9806\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{Amos, capital, April 1,
ain\cf3\f4\fs18\b0{{$180,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql\trleft0\trrh0\trke
rtalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Additional investment by owner during
ellx6238\clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql\trleft0\trrh0\trkee
talt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net Income for the
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
{ 47,630}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb
x6238\clvertalt\cellx8022\clvertalt\cellx9806\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
{ Subtotal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkee
talt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql\trleft0\trrh0
\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less
n\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{16,570}}}\intbl\itap1\cell\pard\pla
addfr3\trpaddt0\trpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx98
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\c
ellx9806\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Incr
ease
in owner}{{\u8217}}{s
\f4\fs18\b0{{\~}
ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ 56,060}}}\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql
ddt0\trpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Amos, capital March
31,
ain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$236,060}}}\intbl\itap1\cell\trow
3\trpaddt0\trpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\ro
806\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\
lx9806\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\p
lain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{161.}{\~}{The assets
and liabilities of Amos Moving Services at March 31, 2014, the end of the current
year, and its revenue and expenses for the year are listed below.}{\~}{ The capital
of the owner was $180,000 at April 1, 2013, the beginning of the current year.}{\~}
{ Mr. Amos invested an additional $25,000 in the business during the
\fs18\b0{{Accounts
cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ Prepare a
balance sheet for the current year ended March 31,
Services}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{March 31,
\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Assets}}}\intbl\itap1\cell\pard\plain\
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs
18\b1{{Liabilities}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
alt\cellx10687\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{$21,420}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Accounts
3\f4\fs18\b0{{$}{\~}
{ 2,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{ 10,340}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clvertalt\cellx2882\clvertalt\cellx4501\clvertalt\cellx9278\clvertalt\cellx1068
llx9278\clvertalt\cellx10687\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{1,670}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
pn\ql\plain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{47,000}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Owner}
{{\u8217}}{s
87\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Building}}
\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\
fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{157,630}}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Amos,
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{236,060}}}\intbl\itap1\cell\trowd\trql\
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx2882\clvertalt\cellx4501\cl
\ql\plain\cf3\f4\fs18\b0{{\~}{ Total
Assets}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{\~}
{ }}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$238,060}}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}
{\~}{\~}{ Total Liabilities and Owner}{{\u8217}}{s
Equity}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$238,060}}}\intbl\itap1\cell\trowd\trql\
vertalt\cellx9278\clvertalt\cellx10687\pard\plain\intbl\itap1\cell\pard\plain\intbl
\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trle
lx10687\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\
plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{162.}{\~}{A summary
of cash flows for Alex Design Services for the year ended December 31, 2012, is
shown
received from
Cash received from additional investment by
lx10291\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\
ddft3\clvertalt\cellx7494\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\
keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
8\b0{{Cash
paid for
~}{\~}{\~}{\~}{ Cash paid for
{\~}{\~}{\~}{ Cash paid for
f3\f4\fs18\b0{{410}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
{\~}{\~}{\~}
48\clvertalt\cellx10291\row\
ddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt\cellx10291\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\pla
addfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt\cellx10291\row\trowd\trql\t
t0\trpaddft3\clvertalt\cellx5248\clvertalt\cellx10291\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The cash balance as of January 1,
Alex Design Services for the year ended December 31,
in\cf3\f4\fs18\b0{{Alex Design
Services}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Cash
Flows}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Year Ended
December 31,
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash flows from
operating
n\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
l\plain\cf3\f4\fs18\b0{{Cash received from
1093\clvertalt\cellx5765\clvertalt\cellx8121\row\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\r
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deduct cash payments for expenses
and
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(27,410)}}}\intbl\itap1\cell\trowd\trq
addt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\tro
r3\trpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\p
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
cash flows from operating
cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\ri
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\
trpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\
1\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash flows
from investing
\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\trowd\trql\trleft0\trrh0\trk
ertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash paid for
f4\fs18\b0{{(47,000)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
llx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\ri0\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\tr
paddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash from financing
l\plain\cf3\f4\fs18\b0{{Cash investment received from
owner }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
lx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\ri0\s
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deduct cash withdrawals from
f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{(5,000)}}}\intbl\itap1\cell\trowd\trql\tr
0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net cash flows from financing
\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{20,000}}}\intbl\itap1\cell\trowd\trq
addt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\row\trowd\trql\trleft0\trrh
3\clvertalt\cellx1093\clvertalt\cellx5765\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
epn\ql\plain\cf3\f4\fs18\b
0{{Net increase in cash during
4\fs18\b0{{$
29,580}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash as of January
1,
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{40,600}}}\intbl\itap1\cell\trowd\trql\trle
\plain\cf3\f4\fs18\b0{{Cash as of December 31,
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$70,180}}}\intbl\itap1\cell\trowd\trql\trl
\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\row\trowd\trql\trleft0\trrh0\trk
ertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\clvertalt\cellx10688\pard\
plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard
\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
x5765\clvertalt\cellx8121\clvertalt\cellx10688\row\pard\plain\sa0\li0\ri0\sb0\keep\
ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plai
n\cf3\f4\fs24\b0{{163.}{\~}{The total assets and the total liabilities of a
business at the beginning and at the end of the year appear below.}{\~}{ During the
year, the owner had withdrawn $55,000 for personal use and had made an additional
investment of $33,000 in the
business.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trlef
rpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\
ul1\fs18\b0{{Assets}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1
0{{Beginning of
4\fs18\b0{{$305,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{$200,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
rtalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\trowd\trql\trleft0\trr
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{End of
4\fs18\b0{{365,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{230,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\t
dft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\row\pard\plain\sa
0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Calcu
late the net income for the
year.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{$52,000}}\plai
n\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20
0\cellx6403\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\
~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\u
l1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Assets}}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{L
iabilities}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6403\row\trow
clbrdrt\brdrs\brdrw20\brdrcf0\cellx6403\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{Beginning of
4\fs18\b0{{ $}{\~}{\~}{\~}{\~}
{ 305,000 }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{ $}{\~}{\~}{\~}{\~}
{ 200,000 }}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdr
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6403\row\trowd
lbrdrt\brdrs\brdrw20\brdrcf0\cellx6403\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
\ql\plain\cf3\f4\fs18\b0{{End of
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ $}{\~}{\~}{\~}{\~}
{ 365,000 }}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ $}{\~}{\~}{\~}{\~}
{ 230,000 }}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
b0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\tr
w20\brdrcf0\cellx6403\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6403\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Change}}\intbl\itap1\cell\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{ $}{\~}{\~}
{\~}{\~}{\~}
{ 60,000 }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{ $}{\~}{\~}{\~}{\~}{\~}
{ 30,000 }}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
f0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx6403\row\trowd\
trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3181\clvertalt\clbr
drl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx4792\clvertalt\clbrdrl
\brdrs\brdrw20\brdrcf0\cellx6403\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1
\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\
brdrw20\brdrcf0\cellx3181\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brd
rw20\brdrcf0\cellx4792\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx6403\row\pard\p
lain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0
{{Based on the change in asset and liabilities, owner's equity increased by $30,000
for the year.}{\~}{\~}{\~}{ Owner investment - owner withdrawal = $22,000 decrease
in equity, making the net income $52,000 ($22,000 +
$30,000).}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{164.}{\~}{What
information does the Income Statement give to business
users?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{The Income
Statement reports the revenues and expenses for a period of time.}{\~}{ The result
is either a Net Income or a Net
Loss.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\
plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{165.}{\~}{What are
the three sections of the Statement of Cash
Flows?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Operating
Activities, Investing Activities, and the Financing
Activities}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\
pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{166.}
{\~}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{Match the following accounts
to the financial statement where they can be found. (Hint: Some of the accounts can
be found in more than one financial
statement.)}}\plain\cf3\f4\i\fs24\b0\line{}\plain\cf3\f4\i\fs24\b0\line{}}\plain\cf
3\f4\fs24\b0{{A. Balance
Sheet}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{B. Income
Statement}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{C. Statement of Cash
Flows}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{D. Statement of Owner}
{{\u8217}}{s
Equity}}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0\line{}\plain\cf3\f4\i\fs24\
b0{}}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\tr
brdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brd
rcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\br
0\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5730\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs1
8\b1{{#}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Account}}}\intbl\itap1\cell\trowd\trql\trbrdrt
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5730\row\trowd\trql\trbrdrt\brdrs\br
drw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\b
rdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\tr
0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\c
f0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5730\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Withdrawals}}\intbl\itap1\cell\trowd\trql\tr
brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5730\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{2.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Revenues}}\intbl\itap1\cell\trowd\trql\
rpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\b
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5730\row\trowd\trql\trbrdrt\b
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\trowd\trq
\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\b
0\cellx5730\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdr
cf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw
20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdr
30\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4.}}\intbl
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{L
and}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5.}}\intbl\i
tap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Acc
ounts
{Accounts
b0{{Operating
b0{{Wages
{Net
{Cash}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
0\cellx5730\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddf
l3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\ce
llx1283\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx5730\pard\plain\intbl\itap1\ce
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brd
rs\brdrw20\brdrcf0\cellx1283\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx5730\row\
pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0
{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par
rcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{#}}}\intbl\itap1\cell\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1
{{Answer}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Account}}}\intbl\itap1\cell\trowd\trql\trbrdr
\brdrw20\brdrcf0\cellx8087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1.}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{D}{\~}{\~}
{\~}{\~}{\~}{ (If Cash, also
C.)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{Withdrawals}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
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l\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0
\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
addfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{B}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Revenues}}\intbl\itap1\cell\t
rowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs
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v\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrd
f0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brd
b0{{A}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{Supplies}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
brdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brd
rcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trke
\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl
\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\
trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
ddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0
\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{4.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A}}\intbl\itap1\cell\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\trowd\
brdrt\brdrs\brdrw20\brdrcf0\cellx8087\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\
87\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{5.}}\intbl
\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A
18\b0{{Accounts
rdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbr
rcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\row\trow
clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{6.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{A}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\ql\plain\cf3\f4\fs18\b0{{7.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{C}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
\ql\plain\cf3\f4\fs18\b0{{8.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{B}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\row\trowd\tr
drt\brdrs\brdrw20\brdrcf0\cellx8087\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{9.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{D}{\~}{\~}{\~}{\~}{\~}{ (if using the indirect
method, also
C)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{Net
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\row\trowd\trq
rt\brdrs\brdrw20\brdrcf0\cellx8087\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b0{{10.}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{A &
C}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\br
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx8087\row\tro
r3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx1235\clvertalt\c
lbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx6214\clvertalt\clbr
drl\brdrs\brdrw20\brdrcf0\cellx8087\pard\plain\intbl\itap1\cell\pard\plain\intbl\it
ap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brd
rs\brdrw20\brdrcf0\cellx1235\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\
brdrw20\brdrcf0\cellx6214\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx8087\row\par
d\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0
\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{167.}{\~}{Name
and describe the four primary financial statements for a
proprietorship.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs2
4\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{1.
Income Statement: A summary of the revenue and
expenses }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{for a specific period
of time}}}\plain\cf3\f4\fs24\b0{{, such as a month or a
year.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b
0{{2. Statement of Owner}{{\u8217}}{s Equity:}{\~}{ A summary of the changes in the
owner}{{\u8217}}{s equity that have
occurred }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{during a specific
period of time}}}\plain\cf3\f4\fs24\b0{{, such as a month or a
0{{3. Balance Sheet: A list of the assets, liabilities, and owner}{{\u8217}}{s
equity }}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{as of a specific
date}}}\plain\cf3\f4\fs24\b0{{, usually at the close of the last day of a month or
a
0{{4. Statement of Cash Flows: A summary of the cash receipts and cash payments for
a}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0{{spe
cific period of time}}}\plain\cf3\f4\fs24\b0{{, such as a month or a
year.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\
plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{168.}{\~}{There are
four transactions that affect Owner}{{\u8217}}{s equity.}{\~}
(a) What are the two types of transactions that increase Owner}{{\u8217}}{s
equity?}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) What are the two
types of transactions that decrease Owner}{{\u8217}}{s
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(a)
Additional investments by the owner and increase in
revenues}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{(b) Withdrawals made
by the owner and increase in
expenses}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pa
rd\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{169.}{\~}{A
summary of cash flows for Lopez Wedding Planning}{\~}{ for the year ended December
31, 2011 is shown
received from
Cash received from bank
x10291\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\t
dft3\clvertalt\cellx7494\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\k
eepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
\b0{{Cash
paid for operating
~}{\~}{\~}{\~}{ Cash paid for
~}{\~}{\~}{\~}{ Cash paid for party
f3\f4\fs18\b0{{9,480}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
ellx10291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{\~}{\~}{\~}
s18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx5248\clvertalt\cellx10291\
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The cash
Lopez Wedding Planning}{\~}{ for the year ended December 31,
in\cf3\f4\fs18\b0{{Lopez Wedding
Planning }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{ Statement of Cash
Flows}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Year Ended
December 31,
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash flows from
operating
3\clvertalt\cellx5765\row\trowd\trql\trleft0\trrh0\t
rkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\c
lvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\s
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash received from
1093\clvertalt\cellx5765\clvertalt\cellx8121\row\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\r
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deduct cash payments for expenses
and
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{{\~}
{ (21,600)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx1093\clverta
lt\cellx5765\clvertalt\cellx8121\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
lvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net cash flows from operating
cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\ri
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\
trpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\
1\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash flows
from investing
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash paid for
cf3\f4\fs18\b0{{(18,070)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
x1093\clvertalt\cellx5765\clvertalt\cellx8121\row\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trow
3\trpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\ro
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash from financing
l\plain\cf3\f4\fs18\b0{{Cash received from bank
1093\clvertalt\cellx5765\clvertalt\cellx8121\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deduct cash withdrawals from
f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ (12,000)}}}\intbl\itap1\cell\trowd\trql\
dt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\clvertalt\cellx8121\row\trowd
\trpaddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net cash flows from financing
\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{3,000}}}\intbl\itap1\cell\trowd\trql
ddt0\trpaddft3\clvertalt\cellx1093\clvertalt\cellx5765\row\trowd\trql\trleft0\trrh0
\clvertalt\cellx1093\clvertalt\cellx5765\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{Net increase in cash during
4\fs18\b0{{$
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash as of January
1,
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{15,580}}}\intbl\itap1\cell\trowd\trql\trle
\plain\cf3\f4\fs18\b0{{Cash as of December 31,
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$36,270}}}\intbl\itap1\cell\trowd\trql\trl
plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard
\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
x5765\clvertalt\cellx8121\clvertalt\cellx10688\row\pard\plain\sa0\li0\ri0\sb0\keep\
ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plai
n\cf3\f4\fs24\b0{{170.}{\~}{Explain the interrelationship between the Balance Sheet
and the Statement of Cash
Flows.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\p
ar\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{The cash
reported on the balance sheet is also reported as the end-of-period cash on the
statement of cash
flows.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard
following data were taken from Harrison Company}{{\u8217}}{s balance
sheet:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs2
4\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{
Dec. 31, 2012}}}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{Dec. 31,
2011}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Total liabilities}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $150,000}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 75,000}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\b0{{a. Compute the ratio of liabilities to owner}{{\u8217}}{s
equity.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24
\b0{{b. Has the creditors}{{\u8217}}{ risk increased or decreased from December 31,
2011, to December 31,
{ 12/31/2012: $150,000 / 75,000 =
2.0}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{ 12/31/2011:
$105,000 / 60,000 =
1.75}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0
{{b.
Decreased}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{172.}{\~}{Company
G has a ratio of liabilities to stockholders}{{\u8217}}{ equity of 0.12 and 0.28
for 2010 and 2011, respectively. In contrast, Company M has a ratio of liabilities
to stockholders}{{\u8217}}{ equity of 1.13 and 1.29 for the same
period. }}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{REQUIRED:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Based on this
information, which company's creditors are more at risk and why? Should the
creditors of either company fear the risk of
nonpayment?}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0
{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{Company
M}{{\u8217}}{s creditors are more at risk than are Company G}{{\u8217}}{s
creditors.The lower the ratio of liabilities to owner}{{\u8217}}{s equity, the
better able the company is to withstand poor business conditions and pay its
obligations to creditors. Without additional information, it appears that the
creditors of either company are well protected against the risk of nonpayment,
because the ratios are relatively low for both.}{\~}{ However, the fact that both
ratios are increasing over the period should be monitored for downturns in business
conditions.}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par
\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{173.}{\~}{Given
the following data:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $128,250}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ 95,000}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
4\b0{{a. Compute the ratio of liabilities to owner}{{\u8217}}{s equity for each
year.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b. Has the creditors}
{{\u8217}}{ risk increased or decreased from December 31, 2013, to December 31,
r\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{a. }}\plain\cf
3\f4\fs24\b0\line{}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{ Dec. 31,
2014}}}\plain\cf3\f4\fs24\b1{\plain\cf3\f4\fs24\b1{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ $128,250}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ 95,000}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ 80,000}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{Ratio of liabilities
to owner}{{\u8217}}{s equity}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{ 1.350}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ 1.50}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{ ($128,250/$95,000)}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ ($120,000/$80,000)}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{b.
Decreased}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\p
ard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{174.}{\~}{The
assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the
year are listed below.}{\~}{ The capital of the owner was $68,000 at January 1,
2014.}{\~}{ The owner invested an additional $10,000 during the year.}{\~}{ Net
income for 2014 is
$45,625.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrdr
eep\trpaddb0\trpa
0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\row\trowd\trql\trbrdrt\brdrs\brdrw20\brd
rr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$13,980}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{ Spa
\f4\fs18\b0{{???}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{\~}{ Wages
Furniture &
plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prep
are an income statement for the current year ended December 31,
in\cf3\f4\fs18\b0{{S&P Day
Spa }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
Statement}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Year Ended
December 31,
Fees
keepn\ql\plain\cf3\f4\fs18\b0{{$98,435}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\
f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}
{ Expenses:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
lain\cf3\f4\fs18\b0{{Wages
\f4\fs18\b0{{Spa Operating
\cellx2082\clvertalt\cellx5185\clvertalt\cellx7778\clvertalt\cellx10371\row\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx2082\clvertalt\cellx5185\clvertalt\cellx7778\clver
f4\fs18\b0{{Office
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}
lvertalt\cellx5185\clvertalt\cellx7778\clvertalt\cellx10371\row\trowd\trql\trleft0\
371\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intb
Total
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ 52,810}}}\intbl\itap1\cell\t
\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$45,625}}}\intbl\itap1
talt\cellx5185\clvertalt\cellx7778\clvertalt\cellx10371\pard\plain\intbl\itap1\cell
l\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\tr
778\clvertalt\cellx10371\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b
0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{175.
}{\~}{The assets and liabilities of S&P Day Spa at December 31, 2014 and its
revenue and expenses for the year are listed below.}{\~}{ The capital of the owner
is $68,000 at December 31, 2014.}{\~}{ The owner invested an additional $10,000
during the
brdrw20\brdrcf0\cellx81
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx10233\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
f4\fs18\b0{{\~}{ Spa
Furniture &
brdrs\brdrw20\brd
ellx10233\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\
addfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\b
rdrw20\brdrcf0\cellx8178\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx10233\row\par
d\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18
\b0{{Determine the capital of the owner at January 1, 2014
(}}\plain\cf3\f4\i\fs18\b0{\plain\cf3\f4\i\fs18\b0{{Hint: Calculate the
increase/decrease in owner}{{\u8217}}{s equity first.}}}\plain\cf3\f4\fs18\b0{{).}
{\~}{ Prepare a statement of owner}{{\u8217}}{s equity for the current year ended
December 31,
Spa }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner}
{{\u8217}}{s Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the
Year Ended December 31,
talt\cellx9806\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0
{{Owner capital, January 1,
ain\cf3\f4\fs18\b0{{$68,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Additional investment by owner during
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net Income for the
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb
0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
{ Subtotal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less
n\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{38,170}}}\intbl\itap1\cell\pard\pla
ellx9806\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Incr
ease in owner}{{\u8217}}{s
\f4\fs18\b0{{\~}
ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{ 17,455}}}\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\row\trowd\trql
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner capital
December 31,
\trpaddt0\trpaddft3\clvertalt\cellx6238\clvertalt\cellx8022\clvertalt\cellx9806\row
06\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\c
x9806\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\pl
ain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{176.}{\~}{The assets
and liabilities of S&P Day Spa at December 31, 2014 and its revenue and expenses
for the year are listed below.}{\~}{ The capital of the owner was $68,000 at
January 1, 2014.}{\~}{ The owner invested an additional $10,000 during the
w20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx5418\clv
s\brdrw20\brdrcf0\cellx10233\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{Accounts
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{??
?}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}{ Spa
Furniture &
\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
addfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf
0\cellx3666\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\c
l\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\ce
rpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrcf0\cellx3666\clver
t\clbrdrl\brdrs\brdrw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\cellx8178\clvertalt\c
lbrdrl\brdrs\brdrw20\brdrcf0\cellx10233\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\q
l\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare a balance sheet for the
Spa}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{December 31,
\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Assets}}}\intbl\itap1\cell\pard\plain\
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs
18\b1{{Liabilities}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn
{{Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
n\ql\plain\cf3\f4\fs18\b0{{\~}{ Accounts
3\f4\fs18\b0{{$}{\~}
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{ 8,490}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trr
t3\clvertalt\cellx3303\clvertalt\cellx4817\clvertalt\cellx9489\clvertalt\cellx10687
lx9489\clvertalt\cellx10687\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{Spa
f3\f4\fs18\b0{{9,230}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
f4\fs18\b0{{Computers}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
pn\ql\plain\cf3\f4\fs18\b0{{2,130}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Owner}{{\u8217}}{s
87\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Spa
Furniture &
Equipment }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{56,000}}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Owner
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{85,455}}}\intbl\itap1\cell\trowd\trql\t
ql\plain\cf3\f4\fs18\b0{{Total
\f4\fs18\b0{{\~}
{ }}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$89,830}}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{ Total
Liabilities and Owner}{{\u8217}}{s
ertalt\cellx9489\clvertalt\cellx10687\pard\plain\intbl\itap1\cell\pard\plain\intbl\
itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx3303\clvertalt\cellx4817\clvertalt\cellx9489\clvertalt\cell
x10687\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\p
lain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{177.}{\~}{For each of
the following companies, identify whether they are a service, merchandising, or
manufacturing
business.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trbrd
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{A.}}}\intbl\itap1\ce
f4\fs18\b1{{Dillards}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
0\clbrdrl\brdrs\brdrw20\brdr
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1
{\plain\cf3\f4\i\fs18\b1{{B.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri
0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Time Warner
Cable}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{C.}}}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{General
Motors}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\b
3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{D.}}}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Blockbuste
r}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw2
ellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0
i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{E.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Applebee}
{{\u8217}}
{s}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4
\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{F.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Sony}}}\intbl\
itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\t
rbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\br
drcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\b
0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\
plain\cf3\f4\i\fs18\b1{{G.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Best
Buy}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdr
\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrc
4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{H.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Banana
Republic}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
lx7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\
plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{I.}}}}\intbl\itap1\cell\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{H
& R
Block}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\br
f0\cellx7099\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
ellx1795\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\c
ell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\br
drw20\brdrcf0\cellx1795\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\row\pard\
plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}
}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs24\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrc
4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{A.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Merchandising
}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20
llx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i
\fs18\b1{\plain\cf3\f4\i\fs18\b1{{B.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Service}}}\intbl
\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\
w20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\r
ow\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\b
rdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\tr
brdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpadd
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\c
\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Manufacturing}}}\intbl\it
ap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trb
w20\brdrcf0\cellx1795\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20
\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\row\
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\pl
ain\cf3\f4\i\fs18\b1{{D.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Service}}}\intbl\itap1\cell\
clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\row\trowd\trq
rdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f
4\i\fs18\b1{{E.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Service /
Manufacturing}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\
20\brdrcf0\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
0\cellx7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\p
lain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{F.}}}}\intbl\itap1\cell\pard\plain\i
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Man
ufacturing}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
brdrcf0\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw2
0\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\
brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\t
drs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{G.}}}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\c
f3\f4\fs18\b1{{Merchandising}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\b
drt\brdrs\brdrw20\brdrcf0\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\tr
brdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brd
rcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trke
\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{H.}}}}\intbl\itap1\ce
f4\fs18\b1{{Merchandising}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdr
rs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx1795\clvertalt\clbrdrb\brdrs\
\brdrs\brdrw20\brdrcf0\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrd
rb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf
0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\
drw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{I.}}}}\intbl\itap1\cell\
fs18\b1{{Service}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrd
rb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf
0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\
drw20\brdrcf0\cellx7099\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw2
0\brdrcf0\cellx1795\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\in
tbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
rr\brdrs\brdrw20\brdrcf0\cellx1795\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx709
9\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\
sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{178.}{\~}{Identify each of
the following as either internal or external users of accounting
information.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\tr
rw20\brdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx953\c
brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{A.}}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf
3\f4\fs18\b1{{Payroll
Manager}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{B.}}}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Bank}}}\int
bl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf
\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brd
row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\
brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\t
rbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpad
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\
rdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrc
\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{President}{{\u8217}}{s
Secretary}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdr
f0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\c
x7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\c
f3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{D.}}}}\intbl\itap1\cell\pard\plain\intbl\i
tap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Internal
Revenue
Service}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
brdrw20\brdrcf0\trbrdrl\brdrs
\
brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv
\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdr
\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clb
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\row\trowd\trql\t
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\
fs18\b1{{E.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Raw Material
Vendors}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\
\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{F.}}}}\intbl\itap1\cell\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Social
Security
Administration}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb
\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\
trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\tr
brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdr
20\brdrcf0\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brd
brdrt\brdrs\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdr
\cellx7099\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\pl
ain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{G.}}}}\intbl\itap1\cell\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Heal
th Insurance
Provider}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs
0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\cl
rcf0\cellx7099\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\b
rdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brdrs\brdrw20\brdrcf0\trbrdrh\brdrs\br
drw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrb\brdrs\b
brdrs\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdr
3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{H.}}}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Managerial
Accountant}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brd
rdrcf0\cellx7099\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brdrw20\brdrc
f0\cellx953\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\pard\plain\intbl\itap
\brdrw20\brdrcf0\cellx953\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7099\row\par
d\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\
~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs24\b0{}\par\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brd
drs\brdrw20\brdrcf0\cellx967\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\
05\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\
f4\fs18\b1{{A.}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\
plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Internal }}}\intbl\itap1\cell\trowd\trq
drs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\row\trowd\trql\trbrdrt\
rdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clverta
0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1
{{B.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{External}}}\intbl\itap1\cell\trowd\trql\trbrdrt\
rdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clverta
0\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\row\trowd\trql\trbrdrt\brdrs\brdr
w20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\brdrw20\brdrcf0\trbrdrr\brd
rs\brdrw20\brdrcf0\trbrdrh\brdrs\brdrw20\brdrcf0\trbrdrv\brdrs\brdrw20\brdrcf0\trle
trpaddft3\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\brdrcf0\clb
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw2
0\brdrcf0\cellx967\clvertalt\clbrdrb\brdrs\brdrw20\brdrcf0\clbrdrl\brdrs\brdrw20\br
drcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\
b1{\plain\cf3\f4\i\fs18\b1{{C.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Internal }}}\intbl\ita
rdrcf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\row\tr
owd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain
\cf3\f4\i\fs18\b1{{D.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
eepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{External}}}\intbl\itap1\cell\tr
owd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\trbrdrb\brdrs\brdrw20\brdrcf0\trbrdrl\brdrs\
rdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\row\trowd\trql\t
\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\pard\plain\intbl\itap1\sa0
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\
fs18\b1{{E.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{External}}}\intbl\itap1\cell\trowd\trql\t
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\
rdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{F
.}}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b1{\plain\cf3\f4\fs18\b1{{External}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brd
cf0\clbrdrr\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\
rdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx7205\row\trowd\trql\trbrdrt\brdrs\brdrw20
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\clbrdrb\br
rdrt\brdrs\brdrw20\brdrcf0\cellx7205\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{G.}}}}\intb
l\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b1{\
plain\cf3\f4\fs18\b1{{External}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20
r\brdrs\brdrw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\clbrdrb\br
rdrt\brdrs\brdrw20\brdrcf0\cellx7205\row\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\clbrdrb\brdrs\brdrw2
\brdrw20\brdrcf0\cellx7205\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b1{\plain\cf3\f4\i\fs18\b1{\plain\cf3\f4\i\fs18\b1{{H.}}}}\intbl\itap1\ce
f4\fs18\b1{{Internal}}}\intbl\itap1\cell\trowd\trql\trbrdrt\brdrs\brdrw20\brdrcf0\t
drw20\brdrcf0\clbrdrt\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\clbrdrb\brdrs\brdrw2
\brdrw20\brdrcf0\cellx7205\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\clbrdrr\brdrs\brd
rw20\brdrcf0\cellx967\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx7205\pard\plain\
intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpadd
rdrr\brdrs\brdrw20\brdrcf0\cellx967\clvertalt\clbrdrl\brdrs\brdrw20\brdrcf0\cellx72
05\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain
\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{179.}{\~}{Determine the
missing amount for each of the
trpaddft3\clvertalt\cellx2605\clvertalt\cellx5740\clvertalt\cellx8963\pard\plain\in
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}
{\~}}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Assets}}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\c
f3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\r
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addf
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l\plain\cf3\f4\fs24\b0{{181.}{\~}{Selected transactions completed by a
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ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rece
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itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\pl
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n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Paid insurance
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ft3\
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fr3\trpaddt0\trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\c
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addt0\trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertal
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t\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx4688\row\trowd\tr
paddt0\trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clverta
lt\cellx4688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
(k)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{-}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\ql\plain\cf3\f4\fs18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trp
cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx4688\row\trowd\trql
ddt0\trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt
\cellx4688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(l
)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{-}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
ql\plain\cf3\f4\fs18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpad
llx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx4688\row\trowd\trql\t
t0\trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\c
ellx4688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(m)}
f3\f4\fs18\b0{{+}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
x674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx4688\row\trowd\trql\trl
\trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cel
lx4688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(n)}}\
b0{{-}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
lain\cf3\f4\fs18\b0{{-}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
74\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx4688\row\trowd\trql\trlef
rpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx
4688\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(o)}}\in
{{+,-}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
lain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
trpaddft3\clvertalt\cellx674\clvertalt\cellx2027\clvertalt\cellx3380\clvertalt\cell
x4688\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap
rtalt\cellx2027\clvertalt\cellx3380\clvertalt\cellx4688\row\pard\plain\sa0\li0\ri0\
sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keep
n\ql\plain\cf3\f4\fs24\b0{{182.}{\~}{From the following list of accounts taken from
Lamar}{{\u8217}}{s accounting records, identify those that would appear on the
Income
trpaddft3\clvertalt\cellx777\clvert
{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{Rent
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land}}\i
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Capital}}\intbl\ita
dr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\
trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\s
a0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell\pard\plain\int
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Withdrawa
l}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\
intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\cell\p
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1\
llx777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319
\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(a), (d),
(f)}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\pl
ain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{183.}{\~}{Identify
which of the following accounts appear on a balance
sheet.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\
0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkee
plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Joe
Brown,
Capital}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
Payable}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rent
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
Advertising}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Land
}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trp
x777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4
\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319\l
i0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{(a), (c), (d), (f),
(g)}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\pl
ain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{184.}{\~}{Indicate
whether each of the following activities would be reported on the Statement of Cash
Flows as an Operating Activity, an Investing Activity, a Financing Activity, or
does not appear on the Cash Flow
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash paid for
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash
paid to
suppliers}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
paid for owner's
withdrawal}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\ita
received from
customers}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap
received from the owner's
investment}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\ita
received from the sale of a
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Borrowe
d cash from a
bank}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
cellx777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf
3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa3
19\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
3\f4\fs18\b0{{Investing}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0
cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b
s18\b0{{Operating}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpad
dfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\cl
0606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\in
{{Financing}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Oper
ating}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(e)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Financing}
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(f)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Investing}}\intb
l\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\t
dfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(g)}}\intbl\itap1\cell\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Financing}}\intbl\itap
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\ce
t\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\
pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{185.}{\~}{For
each of the following, determine the amount of net income or net loss for the
\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\l
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Revenues for the year totaled $71,300 and
expenses totaled $35,500. The owner made an additional investment of $15,000 during
the
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\ce
for the year totaled $220,500 and expenses totaled $175,000. The owner withdrew
$40,000 during the
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\ce
for the year totaled $149,000 and expenses totaled $172,000. The owner invested an
additional $12,000 and withdrew $16,000 during the
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\ce
for Konner Co. totaled $198,150 and expenses totaled $174,200. Cash withdrawals of
$35,000 were paid during the
319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
ertalt\cellx10
291\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\int
{$35,800 net income ($71,300 -
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$45,500
net income ($220,500 -
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$23,00
0 net loss ($149,000 -
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap
1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$23,95
0 net income ($198,150 -
d\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkee
talt\cellx755\clvertalt\cellx10291\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3
4\b0{{186.}{\~}{The total assets and total liabilities of Paul}{{\u8217}}{s Pools,
a proprietorship, at the beginning and at the end of the current fiscal year are as
bl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\u
l1\fs18\b0{{Jan.
1}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Dec.
31}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\
trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx7040\clvertalt\cellx
ain\cf3\f4\fs18\b0{{Total
pn\ql\plain\cf3\f4\fs18\b0{{$475,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\tr
dft3\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\pard\plain\intbl\
itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{205,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{130,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0
\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\row\trowd\trql\trleft
0\trpaddft3\clvertalt\cellx7040\clvertalt\cellx8780\clvertalt\cellx10120\row\pard\p
lain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\tr
eepn\ql\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Determine the amount of net income earned
during the year.}{\~}{ The owner did not invest any additional assets in the
business during the year and made no
withdrawals.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deter
mine the amount of net income during the year.}{\~}{ The assets and liabilities at
the beginning and at the end of the year are unchanged from the amounts presented
above.}{\~}{ However, the owner withdrew $53,000 in cash during the year (no
additional
investments).}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\it
cash in the business in June of the current fiscal year (no
withdrawals).}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
cash in August of the current fiscal year and made twelve monthly cash withdrawals
of $1,500 each during the
n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpa
ellx733\clvertalt\cellx9975\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\
f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa319
\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{Owner's equity at end of year ($475,000 -
$130,000)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\fs18\b0{{$345,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb
x777\clvertalt\cellx8922\clvertalt\cellx10647\row\trowd\trql\trleft0\trrh0\trkeep\t
t\cellx777\clvertalt\cellx8922\clvertalt\cellx10647\pard\plain\intbl\itap1\sa0\li0\
\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Owner's equity at beginning of year
($280,000 -
$205,000)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\
cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
ddl0\trpaddfl3\trpaddr0\trpaddfr3\trpad
\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx8922\clvertalt\cellx10647\par
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
d\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\tr
row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\
dt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx8922\clvertalt\cellx10647\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Increase in
owner's equity as in
(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\fs18\b0{{$270,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpa
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Add
3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx777\clver
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n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deduct additional
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(d)}}\intbl\itap1\cell
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Add withdrawals ($1,500 x
12)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4
\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$288,000}}\intbl\itap1\cell\trowd\trql\trl
\trpaddft3\clvertalt\cellx777\clvertalt\cellx8922\clvertalt\cellx10647\row\trowd\tr
paddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx8922\clvertalt\cellx10647\pard\p
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Deduct
additional
row\pard\plain\sa0\li0\ri0\s
b0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn
\ql\plain\cf3\f4\fs24\b0{{187.}{\~}{Selected transaction data of a business for
September are summarized below.}{\~}{ Determine the following amounts for
September:}{\~}{ (a) total revenue, (b) total expenses, (c) net
income.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0
addft3\clvertalt\cellx9303\clvertalt\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Service sales charged to customers on account
during
Cash received from cash customers for services performed in
\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{C
ash received from customers on account during
September:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
{\~}{\~}{Services performed and charged to customers prior to
~}{\~}{\~}{Services performed and charged to customers during
xpenses incurred prior to September and paid during
penses incurred and paid in
xpenses incurred in September but not paid in
penses for supplies used and insurance (not included above) applicable to
cellx10607\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trlef
rpaddft3\clvertalt\cellx9303\clvertalt\cellx10607\row\pard\plain\sa0\li0\ri0\sb0\ke
ep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}
}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trk
ertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
l\plain\cf3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\s
b0\keepn\ql\plain\cf3\f4\fs18\b0{{$61,000 ($33,000 +
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$43,250
($36,250 + $5,000 +
$2,000)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$17,750
($61,000 -
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alt\cellx777\clvertalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\
\b0{{188.}{\~}{On March 1, 2014, the amount of Norton Cook's capital in Cook}
{{\u8217}}{s Catering Company was $150,000.}{\~}{ During March, he withdrew $31,000
from the business.}{\~}{ The amounts of the various assets, liabilities, revenues,
and expenses are as
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3\f4\fs18\b0{{$}{\~}{\~}
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
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Cash}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Insu
rance
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18\b0{{85,400}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3
07\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellane
ous
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prep
aid
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nt
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ry
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ies
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addft3\clvertalt\cellx8882\clvertalt\cellx10607\row\pard\plain\sa0\li0\ri0\sb0\keep
\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Present, in good form,
(a) an income statement for March, (b) a statement of owner's equity for March, and
(c) a balance sheet as of March
31.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\
pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\par\trowd\trql\trleft0\trrh0\trkeep\tr
\cellx8882\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(a
)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\tr
paddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx8882\row\trowd\trql\tr
in\cf3\f4\fs18\b0{{Cook}{{\u8217}}{s Catering
Company}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
March 31,
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ellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ope
rating
{\~}{\~}{\~}{Salary
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}{\~}{\~}{\~}{Rent
{\~}{\~}{Utilities
{\~}{\~}{Supplies
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{\~}{\~}{Insurance
\clvertalt\cellx10607\row\trowd\trql\trleft0\tr
ft3\clvertalt\cellx8882\clvertalt\cellx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0
\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Miscellaneous
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
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\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx8882\clvertalt\cellx10607\row
\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trl
\trpaddft3\clvertalt\cellx8882\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{(b)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx8882\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cook}{{\u8217}}{s Catering
Company}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner's
March 31,
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4\fs18\b0{{$150,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
llx10607\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
income for the
month }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{$}{\~}{\~}
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less
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owner's
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capital, March 31,
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$148,840}}}\intbl\itap1\cell\trowd\trql\tr
0\trpaddft3\clvertalt\cellx8882\clvertalt\cellx10607\row\trowd\trql\trleft0\trrh0\t
lvertalt\cellx8882\clvertalt\cellx10607\pard\plain\intbl\itap1\cell\pard\plain\intb
l\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\
trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx8882\clvertalt\cellx10607\row\
s18\b0\line{}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trl
\trpaddft3\clvertalt\cellx3619\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{(c)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
r0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3619\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cook}{{\u8217}}{s Catering
Company}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
{\~}
\plain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}
lain\cf3\f4\fs18\b0{{Accounts
rtalt\cel
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Prepaid
cf3\f4\fs18\b0{{3,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\kee
0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Owner's
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0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{900}}\intbl\itap1\cell\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Norton Cook,
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
{ 148,840}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
l\plain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
l\plain\cf3\f4\fs18\b0{{Total liabilities
\ql\plain\cf3\f4\fs18\b0{{Total
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rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{owner's
\cellx9004\clvertalt\cellx10729\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpadd
vertalt\cellx4923\clvertalt\cellx5490\clvertalt\cellx9004\clvertalt\cellx10729\pard
\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\par
d\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkee
talt\cellx3619\clvertalt\cellx4923\clvertalt\cellx5490\clvertalt\cellx9004\clvertal
t\cellx10729\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\
{Simpson Designers began operations on April 1, 2011.}{\~}{ The financial
statements for Simpson Designers are shown below for the month ended April 30, 2011
(the first month of operations).}{\~}{ Determine the missing amounts for letters
(a) through
(o).}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\tr
ft3\clvertalt\cellx7093\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
4\fs18\b0{{Simpson
Designers}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
April 30,
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Wages
3\f4\fs18\b0{{(a)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\q
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Supplies
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Miscellaneous
0\keepn\ql\plain\cf3\f4\fs
l\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}
{(b)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
plain\cf3\f4\fs18\b0{{Net
plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{(c)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\tr
\b0{{Simpson
Designers}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner's
April 30,
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Lori Simpson,
capital, April 1,
ain\cf3\f4\fs18\b0{{0}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\r
i0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Investment on April 1,
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net income for
April}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{(d)}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{(e)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
eepn\ql\plain\cf3\f4\fs18\b0{{Less
plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}
{(f)}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
plain\cf3\f4\fs18\b0{{Lori Simpson, capital, April 30,
llx10648\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\p
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Simpson
Designers}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{April 30,
{\~}{\~}{\~}{\~}{\~}{\~}
{(g)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
ain\cf3\f4\fs18\b0{{Accounts
3\f4\fs18\b0{{$}{\~}
{(i)}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0
t0\trpaddft3\clvertalt\cellx
29\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Supplies}}
\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18
\b0{{8,100}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Owner's
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\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}
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\c
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d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}
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d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$38,100}}\intbl\
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0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(h)}}\intbl\itap1\cell\pard\plain\intbl\it
ap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$17,000}}\intbl\itap1\cell\trowd
\trpaddt0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\
0\keepn\ql\plain\cf3\f4\fs18\b0{{(i)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$17,800}}\intbl\itap1\cell\trowd\trql\tr
0\trpaddft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\tr
vertalt\cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{(j)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\
sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$38,100}}\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clvertalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkeep\trp
cellx777\clvertalt\cellx10606\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{(k)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keep
n\ql\plain\cf3\f4\fs18\b0{{$55,900}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trke
rtalt\cellx777\clvertalt\cellx10606\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\tr
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fs18\b0{{(l)}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{$35,000
given}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(m)}}\intbl\itap1\ce
ll\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(n)}}\intbl\itap1\
tbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(o)}}\intbl\itap1\cell\par
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$30,800}}\intbl\
rtalt\cellx10606\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\
par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{190.}{\~}
{Eric Wood, CPA, was organized on January 1, 2011, as a proprietorship.}{\~}{ List
the errors that you find in the following financial statements and prepare the
corrected statements for the three months ended March 31,
2011.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\t
dft3\clvertalt\cellx7093\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\
f4\fs18\b0{{Eric Wood,
Ended March 31,
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\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Salary
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3\f4\fs18\b0{{\~}
{\~}}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{4,000}}}\intbl\itap1\cell
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\keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood,
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January, 1,
ain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
in\cf3\f4\fs18\b0{{Investment on January 1,
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\
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fr3\trpaddt0\trpaddft3\clvertalt\cellx3619\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\k
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Owner's
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{$13,000}{\~}
\fs18\b0{{\~}{ Eric Wood,
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8\b0{{10,860}{\~}
\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1\cell\pard\plain\
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3\f4\fs18\b0{{2,670}{\~}
\fs18\b0{{\~}{ Accounts
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ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\
plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{925}}}\plain\cf3\f4\fs18\b0{{\~}
\fs18\b0{{\~}{\~}{ }{\~}{Total liabilities
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\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$33,225}}}\plain\cf3\f4\fs18\b0{{\~}
\fs18\b0{{\~}{\~}{\~}{\~}{ owner's
left0\trrh0\trkeep\trpaddb0\trpadd
vertalt\cellx5449\clvertalt\cellx8963\clvertalt\cellx10688\row\pard\plain\sa0\li0\r
i0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\
fs24\b0{}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{E
rrors in the Eric Wood, CPA, financial statements include the
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(1)}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Miscellaneous expense is incorrectly
listed after utilities expense in the income statement. Miscellaneous expense
should be listed as the last expense, regardless of the
amount.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(2)}}\intbl\itap1\
cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
operating expenses are incorrectly added.}{\~}{ Instead of $28,000, the total
should be
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(3)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Because
operating expenses are incorrectly added, the net income is incorrect. It should be
listed as
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(4)}}\intbl\itap1\
statement of owner's equity should be for a period of time instead of a specific
date.}{\~}{ That is, the statement of owner's equity should be reported "For the
Three Months Ended March 31,
2011."}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(5)}}\intbl\itap1\c
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
amount of the owners' equity is incorrect. It should be
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
name of the company is missing from the balance sheet
heading.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpa
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{The
balance sheet should be as of "March 31, 2011," not "For the Three Months Ended
March 31,
2011."}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash, not
Land, should be the first asset listed in the balance
sheet.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
ell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
Payable is incorrectly listed as an asset in the balance sheet.}{\~}{ Accounts
Payable should be listed as a
liability.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
rd\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(10)}}\intbl\it
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Liab
ilities should be listed in the balance sheet ahead of owner's
equity.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(11)}}\intbl\itap1
\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Account
s Receivable is incorrectly listed as a liability in the balance sheet. Accounts
Receivable should be listed as an
asset.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{(12)}}\intbl\itap1\
total assets and the total liabilities and owner}{{\u8217}}{s equity do not
foot.}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl
f3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Correctly prepared financial statements
for Eric Wood, CPA, are shown
ddft3\clvertalt\cellx7093\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{Eric Wood,
Ended March 31,
ep\trpaddb0\trpaddfb3\trpad
ellx8923\clvertalt\cellx10648\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{\~}{\~}{\~}{Salary
0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{Miscellaneous
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
b0\keepn\ql\plain\cf3\f4\fs18\b0{{Total operating
plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$9,340}}}\intbl\itap1\cell\trow
3\trpaddt0\trpaddft3\clvertalt\cellx7093\clvertalt\cellx8923\clvertalt\cellx10648\r
10648\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap
ellx10648\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\t
dfr3\trpaddt0\trpaddft3\clvertalt\cellx3619\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood,
Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For the Three Months
Ended March 31,
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood, capital,
January, 1,
ain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
cellx5028\clvertalt\cellx5595\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Investment on January 1,
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net income for three
\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$29,340}}\intbl\itap1\cell\pard\plain\intbl
\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\t
rpaddt0\trpaddft3\clvertalt\cellx3619\clvertalt\cellx5028\clvertalt\cellx5595\row\t
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less
{5,000}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
i0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Increase in owner's
\plain\cf3\f4\fs18\b0{{Eric Wood, capital, March 31,
\trpaddt0\trpaddft3\clvertalt\cellx3619\clvertalt\cellx5028\clvertalt\cellx5595\row
addfr3\trpaddt0\trpaddft3\clvertalt\cellx3619\pard\plain\intbl\itap1\sa0\li0\ri0\sb
0\keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood,
CPA}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
in\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{Assets}}}\intbl\itap1\cell\pard\pl
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0
{\plain\cf3\f4\ul1\fs18\b0{{Liabilities}}}\intbl\itap1\cell\pard\plain\intbl\itap1\
sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trl
\trpaddft3\clvertalt\cellx3619\clvertalt\cellx5028\clvertalt\cellx5595\clvertalt\ce
llx7320\clvertalt\cellx9045\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
alt\cellx5028\clvertalt\cellx5595\clvertalt\cellx7320\clvertalt\cellx9045\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cel
l\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$10,860}}\i
f4\fs18\b0{{Accounts
3\f4\fs18\b0{{$}{\~}{\~}
{2,670}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
llx5028\clvertalt\cellx5595\clvertalt\cellx7320\clvertalt\cellx9045\row\trowd\trql\
\cellx7320\clvertalt\cellx9045\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{2,225}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\ke
vertalt\cellx5028\clvertalt\cellx5595\clvertalt\cellx7320\clvertalt\cellx9045\row\t
pn\ql\plain\cf3\f4\fs18\b0{{Supplies}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{925}}\intbl\itap1\cell\pard\plain\intbl\
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Eric Wood,
cellx5028\clvertalt\cellx5595\clvertalt\cellx7320\clvertalt\cellx9045\row\trowd\trq
lt\cellx7320\clvertalt\cellx9045\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pl
ain\cf3\f4\fs18\b0{{Land}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\
keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}
l\plain\cf3\f4\fs18\b0{{Total liabilities
alt\cellx5028\clvertalt\cellx5595\clvertalt\cellx7320\clvertalt\cellx9045\row\trowd
\trpaddt0\trpaddft3\clvertalt\cellx3619\clvertalt\cellx5028\clvertalt\cellx5595\clv
l\plain\cf3\f4\fs18\b0{{Total
d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{owner's
rtalt\cellx5028\clvertalt\cellx5595\clvertalt\cellx7320\clvertalt\cellx9045\clverta
lt\cellx10770\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\in
tbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\i
pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\
li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{191.}{\~}{Using the following
accounts and their amounts, prepare in good format an Income Statement for Bright
Futures Company, month ended August 31,
Bright,
mputer
son Bright,
s
ties
e
pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trle
trpaddft3\clvertalt\cellx3906\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Bright Futures
Company}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
Statement}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For Month Ended
August 31,
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Fees
llx5163\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Expen
ses:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f
talt\cellx5163\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpa
\clvertalt\cellx7279\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\f
s18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{ Wages
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{ Rent
rtalt\cellx3906\clvertalt\cellx5163\clvertalt\cellx7279\pard\plain\intbl\itap1\sa0\
li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{ Telephone
ep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clv
\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{ Utilities
llx3906\clvertalt\cellx5163\clvertalt\cellx7279\row\trowd\trql\trleft0\trrh0\trkeep
alt\cellx3906\clvertalt\cellx5163\clvertalt\cellx7279\pard\plain\intbl\itap1\sa0\li
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{ Office
{ 420}}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
\f4\fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddf
ertalt\cellx5163\clvertalt\cellx7279\row\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\t
\fs18\b0{{Total
f3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{8,520}}}\intbl\itap1\cell\trowd\trql\t
t0\trpaddft3\clvertalt\cellx3906\clvertalt\cellx5163\row\trowd\trql\trleft0\trrh0\t
\ql\plain\cf3\f4\fs18\b0{{Net
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$}{\~}{\~}
talt\cellx7279\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\i
vertalt\cellx7279\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}
\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{192.}{\~}
{Using the following accounts and their amounts, prepare in good format a Statement
of Owner}{{\u8217}}{s Equity for Bright Futures Company, month ended August 31,
Bright,
mputer
son Bright,
s
ties
e
3\f4\fs18\b0{{$420}}\intbl\itap1\cell\trow
addft3\clvertalt\cellx3527\clvertalt\cellx5134\pard\plain\intbl\itap1\cell\pard\pla
4\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{\plain\cf3\f4\f
s24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\p
ntbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Bright Futures
Company}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner}
{{\u8217}}{s Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{For Month
Ended August 31,
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jason Bright,
Capital, August 1,
4\fs18\b0{{$}{\~}
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{7,180}}}\intbl\itap1\cell\trowd\trql\trl
l\plain\cf3\f4\fs18\b0{{Subtotal}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\
ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Less:
Withdrawals}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{\~}{ }}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}
{\~}{\~}
{ 800}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpadd
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jason Bright,
Capital August 31,
4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{$
20,700}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
lt\cellx8272\clvertalt\cellx9765\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f
b0{{193.}{\~}{Using the following accounts and their amounts, prepare in good
format a Balance Sheet for Bright Futures Company, month ended August 31,
Bright,
mputer
son Bright,
s
3\f4\fs18\b0{{$4,800}}\intbl\itap1\ce
0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Utilities
e
pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trle
trpaddft3\clvertalt\cellx4524\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
\cf3\f4\fs18\b0{{Bright Futures
Company}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{August 31,
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Assets}}\intbl\ita
p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\
fl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4524\clvertalt\cellx6396\r
rpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4524\clvertalt\cellx6396\pard\plain\intb
l\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\intbl\itap1\cell\pard
\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Accounts
\cf3\f4\fs18\b0{{1,500}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\
cellx6396\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Sup
96\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Computer
cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{20,000}}}\intbl\itap1\cell\trowd\trql
ddt0\trpaddft3\clvertalt\cellx4524\clvertalt\cellx6396\row\trowd\trql\trleft0\trrh0
pn\ql\plain\cf3\f4\fs18\b0{{Total
\f4\fs18\b0{{$
\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpaddl0\trpaddfl3\t
rpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4524\clvertalt\cellx6396\row\tr
fr3\trpaddt0\trpaddft3\clvertalt\cellx4524\clvertalt\cellx6396\pard\plain\intbl\ita
p1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total Liabilities and Owner}
{{\u8217}}{s
96\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Liabilitie
s:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{\~}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\t
rpaddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4524\clverta
ard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}
{\~}{ Accounts
3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{\~}{\~}
{ Notes
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ql\plain\cf3\f4\fs18\b0{{Total
Liabilities}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{$}{\~}
plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Jason Bright,
t0\trpaddft3\clvertalt\cellx4524\clvertalt\cellx6396\row\trowd\trql\trleft0\trrh0\t
\ql\plain\cf3\f4\fs18\b0{{\~}{\~}{ Total Liabilities and Owner}{{\u8217}}{s
\f4\fs18\b0{{$
rpaddr
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b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\ql\plain\cf3\f4\fs24\b0{{194
.}{\~}{The account balances of Trendsetter Travel Services at December 31, 2014 are
listed
below:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{}\par\trowd\trql\trleft0\
4\fs18\b0{{Accounts
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{J. Trendsetter, Capital}{\~}
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\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{1,000}}\intbl\itap1\cell\trow
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\plain\cf3\f4\fs18\b0{{Taxes
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n\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\pla
4\clvertalt\cellx5069\clvertalt\cellx8671\clvertalt\cellx10097\row\pard\plain\sa0\l
i0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepare
an income statement,}{\~}{ statement of owner}{{\u8217}}{s equity, and a balance
sheet as of December 31,
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0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Trendsetter Travel
Services }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Income
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\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\
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lx3042\clvertalt\cellx6554\clvertalt\cellx7105\clvertalt\cellx8779\clvertalt\cellx1
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d\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Operating
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cellx449\clvertalt\cellx3042\clvertalt\cellx6554\clvertalt\cellx7105\clvertalt\cell
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3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Wages
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25,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
rtalt\cellx3042\clvertalt\cellx6554\clvertalt\cellx7105\clvertalt\cellx8779\clverta
dfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\cellx3042\c
lvertalt\cellx6554\clvertalt\cellx7105\clvertalt\cellx8779\clvertalt\cellx10453\par
{{Rent
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clvertalt\cellx449\clvertalt\cellx3042\clvertalt\cellx6554\clvertalt\cellx7105\clve
ql\plain\cf3\f4\fs18\b0{{Utilities
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lvertalt\cellx449\clvertalt\cellx3042\clvertalt\cellx6554\clvertalt\cellx7105\clver
l\plain\cf3\f4\fs18\b0{{Supplies
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l\plain\cf3\f4\fs18\b0{{Taxes
\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}{\~}
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b0{{Total Operating
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1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
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fr3\trpaddt0\trpaddft3\clvertalt\cellx449\clvertalt\cellx3042\clvertalt\cellx6554\c
lvertalt\cellx7105\clvertalt\cellx8779\clvertalt\cellx10453\pard\plain\intbl\itap1\
cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1
\cell\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\trowd\trql\trleft0\tr
ft3\clvertalt\cellx449\clvertalt\cellx3042\clvertalt\cellx6554\clvertalt\cellx7105\
clvertalt\cellx8779\clvertalt\cellx10453\row\pard\plain\sa0\li0\ri0\sb0\keep\keepn\
ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4011\pard\pla
in\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Trendsetter Travel
Services }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Statement of Owner}
{{\u8217}}{s
Equity}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs1
8\b0{{For the Year Ended December 31,
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0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx4011\row\trowd\trq
addt0\trpaddft3\clvertalt\cellx4011\clvertalt\cellx6209\clvertalt\cellx8753\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{J. Trendsetter,
Capital
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\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net Income for the year}{\~}{\~}{\~}
{\~}{\~}
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paddt0\trpaddft3\clvertalt\cellx4011\clvertalt\cellx6209\clvertalt\cellx8753\row\tr
pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{J.
Trendsetter, Capital,
12/31/14}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
f3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\p
lain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul
1\fs18\b0{{$42,000}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
lx4011\clvertalt\cellx6209\clvertalt\cellx8753\pard\plain\intbl\itap1\cell\pard\pla
cellx4011\clvertalt\cellx6209\clvertalt\cellx8753\row\pard\plain\sa0\li0\ri0\sb0\ke
ep\keepn\ql\plain\cf3\f4\fs18\b0{}\par\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trp
\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Trendsetter
Travel Services }}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Balance
Sheet}}\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18
\b0{{December 31,
2014}}\plain\cf3\f4\ul1\fs18\b0{}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep
clvertalt\cellx4920\clvertalt\cellx9249\clvertalt\cellx10413\pard\plain\intbl\itap1
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\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b1{\plain\cf3\f4\fs18\b1{{Liabilities}}}\intbl\itap1\cell\pard\plain
\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\t
\clvertalt\cellx9249\clvertalt\cellx10413\row\trowd\trql\trleft0\trrh0\trkeep\trpad
llx3001\clvertalt\cellx4573\clvertalt\cellx4920\clvertalt\cellx9249\clvertalt\cellx
10413\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Cash}}\
b0{{$18,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
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Equipment }}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain
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0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}
{\~}{\~}
l\plain\cf3\f4\fs18\b0{{J. Trendsetter,
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\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\pla
in\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\int
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3\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Total
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\plain\cf3\f4\fs18\b0{{Total Liabilities and Owner}{{\u8217}}{s
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cf3\f4\fs18\b0{}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb
rtalt\cellx4573\clvertalt\cellx4920\clvertalt\cellx9249\clvertalt\cellx10413\row\tr
l\itap1\cell\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
paddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx3001\clvertalt\cellx4573\clverta
lt\cellx4920\clvertalt\cellx9249\clvertalt\cellx10413\row\pard\plain\sa0\li0\ri0\sb
0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\par\pard\plain\sa319\li0\ri0\sb319\keep\keepn\
ql\plain\cf3\f4\fs24\b0{{195.}{\~}{The accountant for Flagger Company prepared the
following list of account balances from the company}{{\u8217}}{s records for the
pn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl
\
itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Ca
sh}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{$}{\~}
0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Flagger,
counts
ries & Wages
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0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs18\b0\line{}\plain\cf3\f4\fs18\b0{{Prepa
re an Income Statement for Flagger Company in good
form.}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24\b0{}}\pa
0\trpaddft3\clvertalt\cellx539\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plai
n\cf3\f4\fs18\b0{{Flagger
Company}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trpad
dl0\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx539\row\trowd\tr
paddt0\trpaddft3\clvertalt\cellx539\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql
\plain\cf3\f4\fs18\b0{{Income
Statement}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
trpaddt0\trpaddft3\clvertalt\cellx539\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\
ql\plain\cf3\f4\fs18\b0{{For the Year Ended December 31,
\trpaddfl3\trpaddr0\trpaddfr3\trpaddt0\trpaddft3\clvertalt\cellx539\row\trowd\trql\
dt0\trpaddft3\clvertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\
cellx6398\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Rev
enues:}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3
talt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\row\trowd
\trpaddt0\trpaddft3\clvertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clve
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f4\fs18\b0{{Fees
\f4\fs18\b0{{$}{\~}{\~}{
165,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf
ertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\row\trowd\trql\trleft0\trr
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p1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Inter
est
\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}
f3\f4\fs18\b0{{$}{\~}{\~}
{ 168,000}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\trp
rtalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\pard\pla
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3\clvertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\pa
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3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}
{ 51,000}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\c
vertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\row\trowd\trql\trleft0\tr
ft3\clvertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\
ries & wages
\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\row\trowd\trq
t\cellx6398\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\
s18\b0{{Selling
t\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\row\trowd\tr
paddt0\trpaddft3\clvertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clverta
lt\cellx6398\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{
\~}}\intbl\itap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\
fs18\b0{{Income taxes
3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}{\~}{\~}
cf3\f4\ul1\fs18\b0{\plain\cf3\f4\ul1\fs18\b0{{\~}{\~}
{ 153,000}}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\tr
ertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\pard\pl
ain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{Net
keepn\ql\plain\cf3\f4\fs18\b0{{$}{\~}{\~}{\~}{\~}
talt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\pard\plai
n\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}\intbl\itap1\cell\
ap1\cell\pard\plain\intbl\itap1\sa0\li0\ri0\sb0\keepn\ql\plain\cf3\f4\fs18\b0{{\~}}
\b0{{=======}}\intbl\itap1\cell\trowd\trql\trleft0\trrh0\trkeep\trpaddb0\trpaddfb3\
lt\cellx2243\clvertalt\cellx4362\clvertalt\cellx6398\row\trowd\trql\trleft0\trrh0\t
talt\cellx8517\pard\plain\intbl\itap1\cell\pard\plain\intbl\itap1\cell\pard\plain\i
dt0\trpaddft3\clvertalt\cellx539\clvertalt\cellx2243\clvertalt\cellx4362\clvertalt\
cellx6398\clvertalt\cellx8517\row\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\f
{196.}{\~}{Schultz Tax Services, a tax preparation business had the following
transactions during the month of
June:}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\i\fs24\b0{\plain\cf3\f4\i\fs24\b0\
line{}}\plain\cf3\f4\fs24\b0{{1.}{\~}{ Received cash for providing accounting
services, $3,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{2.}{\~}
{ Billed customers on account for providing services,
$7,000.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{3.}{\~}{ Paid
advertising expense, $800.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{4.}
{\~}{ Received cash from customers on account,
$3,800.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{5.}{\~}{ Owner made a
withdrawal, $1,500.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{6.}{\~}
{ Received telephone bill,
$220.}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0{{7.}{\~}{ Paid telephone
bill,
$220}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0
\line{}\plain\cf3\f4\fs24\b0{{Based on the information given above, calculate the
balance of Cash at June 30.}{\~}{ (Hint: Use the following
reconcilitation.)}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\c
f3\f4\fs24\b0{{Cash, June 1}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
24\b0{{Plus: cash receipts for June}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
f4\fs24\b0{{Minus: cash payments for June}{\~}{\~}
f4\fs24\b0{{Cash, June 30}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ ____________}}\plain\cf3\f4\fs24\b0{\plain\cf3\f4\fs24\b0{{\~}}\plain\cf3\f4\fs24
\b0{}}\par\pard\plain\sa0\li0\ri0\sb0\keep\keepn\ql\plain\cf3\f4\fs24\b0\line{}\pla
in\cf3\f4\fs24\b0{{Cash, June 1}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
24\b0{{Plus: cash receipts for June}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}
\b0{{Minus: cash payments for June}{\~}{\~}{\~}{\~}{\~}{\~}
{ }}\plain\cf3\f4\ul1\fs24\b0{\plain\cf3\f4\ul1\fs24\b0{{\~}
{ 2,520}}}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs24\b0\line{}\plain\cf3\f4\fs2
4\b0{{Cash,
June 30}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}{\~}
{ $29,280}}\par\pard\plain\sa0\li0\ri0\sb0\keep\ql\plain\cf3\f4\fs18\b0{{\~}}\pa

Chapter 1 - Introduction To Accounting and Business

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