Question 1

For each of the following transactions, identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L", and "E" to indicate assets, liabilities, and equity, respectively. Part A has been completed as an example.

Accepted Answer

The answer of For each of the following transactions, identify...

Question 2

Data for Madison Realty are as follows:
The owner, Mary Madison, withdrew a total of $30,000 for personal use during the year. Using the above data, prepare Madison Realty's Statement of changes in equity for the year ended December 31.

Accepted Answer

The answer of Data for Madison Realty are as follows:
The...

Question 3

Graham Roofing Company, owned by R. Graham, began operations in May and completed the following transactions during that first month of operations. Show the effects of the transactions on the accounts of the accounting equation by recording increases and decreases in the appropriate columns in the table below. Do not determine new account balances after each transaction. Determine the final total for each account and verify that the equation is in balance.

Accepted Answer

The answer of Graham Roofing Company, owned by R. Graham,...

Question 4

The following schedule reflects shows the first month's transactions of the Bill Blue Real Estate Company:
Provide descriptions for each transaction.

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The answer of The following schedule reflects shows the first...

Question 5

A ____________________ is a business that is owned by only one person.

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The answer of A ____________________ is a business that is...

Question 6

Identify the risk and the return in each of the following examples.
a. Investing $500 in a CD at 4.5% interest.
b. Placing a $100 bet on an NBA game.
c. Investing $10,000 in Microsoft shares.
d. Borrowing $20,000 in student loans.

Accepted Answer

The answer of Identify the risk and the return in...

Question 7

Prepare a November 30 balance sheet in proper form for Green Bay Delivery Service from the following alphabetical list of the accounts at November 30:

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The answer of Prepare a November 30 balance sheet in...

Question 8

From the information given below, prepare a November income statement, a November statement of changes in equity, and a November 30 balance sheet. On November 1 of the current year, Lois Bell began Lois Bell, Interior Design with an initial investment of $50,000 cash. On November 30 her records showed the following (alphabetically arranged) items and amounts.

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The answer of From the information given below, prepare a...

Question 9

Accounting is an ______________________ that identifies, records and communicates relevant, reliable and comparable information about an organization's economic activities.

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The answer of Accounting is an ______________________ that identifies, records...

Question 10

The records of Skymaster Airplane Rentals show the following information as of December 31. Skymaster withdrew $52,000 during the year for personal expenses. Prepare a December income statement, a December statement of changes in equity, and a December 30 balance sheet.

Accepted Answer

The answer of The records of Skymaster Airplane Rentals show...

Question 11

The accounts of Garfield Company with the increases or decreases that occurred during the past year are as follows:
Except for net income, an investment of $3,000 by the owner, and a withdrawal of $11,000 by the owner, no other items affected the owner's capital account. Using the balance sheet equation, compute net income for the past year.

Accepted Answer

The answer of The accounts of Garfield Company with the...

Question 12

Annie's Attic has the following account balances for the dates given:
Also, its net income, for September 1 through September 30 was $20,000 and there were no investments or withdrawals by the owner. Determine the equity at both September 1 and September 30.

Accepted Answer

The answer of Annie's Attic has the following account balances...

Question 13

______________ users of accounting information are not directly involved in running the organization.

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The answer of ______________ users of accounting information are not...

Question 14

The accountant of Magic Video Games prepared a balance sheet immediately after each transaction was recorded. During September, the first month of operation, the following balance sheets were prepared:
    Required: Describe the nature of each of these five transactions for the month of September.

Accepted Answer

The answer of The accountant of Magic Video Games prepared...

Question 15

At the beginning of the year, a company had $120,000 worth of liabilities. During the year, assets increased by $160,000 and at year-end they equaled $360,000. Liabilities decreased $20,000 during the year. Calculate the beginning and ending values of equity.

Accepted Answer

The answer of At the beginning of the year, a...

Question 16

Prepare a December 31 balance sheet in proper form for Surety Insurance using the following accounts and amounts:

Accepted Answer

The answer of Prepare a December 31 balance sheet in...

Question 17

If the liabilities of a company increased $92,000 during a period of time and equity in the business decreased $30,000 during the same period, did the assets of the company increase or decrease? By what amount?

Accepted Answer

The answer of If the liabilities of a company increased...

Question 18

A parcel of land is offered for sale at $600,000, is assessed for tax purposes at $500,000, is recognized by its purchasers as easily being worth $575,000, and is sold for $570,000. At what amount should the land be recorded in the purchaser's books? What accounting principle supports your answer?

Accepted Answer

The answer of A parcel of land is offered for...

Question 19

Hal Burton began a Web Consulting practice and completed these transactions during September of the current year:
Show the effects of the above transactions on the accounting equation of Halley Burton, Consultant. Use the following format for your answers. The first item is shown as an example.
Increase = I Decrease = D No effect = N

Accepted Answer

The answer of Hal Burton began a Web Consulting practice...

Question 20

FastForward has the following beginning cash balance and cash transactions for the month of January. Using this information prepare a statement of cash flows.

Accepted Answer

The answer of FastForward has the following beginning cash balance...

Quiz 1: Accounting in Business

For each of the following transactions, identify the effects as reflected in the accounting equation. Use "+" to indicate an increase and "-" to indicate a decrease. Use "A", "L", and "E" to indicate assets, liabilities, and equity, respectively. Part A has been completed as an example.

Data for Madison Realty are as follows: The owner, Mary Madison, withdrew a total of $30,000 for personal use during the year. Using the above data, prepare Madison Realty's Statement of changes in equity for the year ended December 31.

The following schedule reflects shows the first month's transactions of the Bill Blue Real Estate Company: Provide descriptions for each transaction.