Question 1

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014.
  Prepare a retained earnings statement for the current year ended December 31, 2014.

Accepted Answer

The answer of The assets and liabilities of S&P Day...

Question 2

There are four transactions that affect stockholders' equity.
(a) What are the two types of transactions that increase stockholders' equity?
(b) What are the two types of transactions that decrease stockholders' equity?

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Question 3

The total assets and total liabilities of Paul's Pools, a corporation, at the beginning and at the end of the current fiscal year are as follows:

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Question 4

Company G has a ratio of liabilities to stockholders' equity of 0.12 and 0.28 for 2010 and 2011, respectively. In contrast, Company M has a ratio of liabilities to stockholders' equity of 1.13 and 1.29 for the same period.
REQUIRED:
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?

Accepted Answer

The answer of Company G has a ratio of liabilities...

Question 5

Selected transactions completed by a corporation are described below. Indicate the effects of each transaction on assets, liabilities, and stockholders' 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.

Accepted Answer

The answer of Selected transactions completed by a corporation are...

Question 6

Given the following data:
$\begin{array}{lcl}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\
\text { Total liabilities } & \$ 128,250 & \$ 120,000 \
\text { Total stockholders' equity } & 95,000 & 80,000
\end{array}$

a. Compute the ratio of liabilities to stockholders' equity for each year.
b. Has the creditors' risk increased or decreased from December 31, 2013, to December 31, 2014?

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The answer of Given the following data:
\(\begin{array}{lcl}&\text { Dec. }...

Question 7

Determine the missing amount for each of the following:

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Question 8

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014. Net income for 2014 is $45,625.
 
 Prepare an income statement for the current year ended December 31, 2014.

Accepted Answer

The answer of The assets and liabilities of S&P Day...

Question 9

From the following list of accounts taken from Lamar's accounting records, identify those that would appear on the income statement.
A) Rent Expense
B) Land
C) Capital Stock
D) Fees Earned
E) Dividends
F) WagesExpense
G) Taxes Payable

Accepted Answer

These accounts represent revenues and expenses, which are included on the income statement.

Question 10

Identify each of the following as an (1) increase in stockholders' equity, or a (2) decrease in stockholders' equity.

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Question 11

What information does the income statement give to business users?

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Question 12

Identify each of the following as either internal or external users of accounting information.
 $\begin{array} { | l | l | } 
\hline \text { A. } & \text { Payroll Manager } \
\hline \text { B. } & \text { Bank } \
\hline \text { C. } & \text { President's Secretary } \
\hline \text { D. } & \text { Internal Revenue Service } \
\hline \text { E. } & \text { Raw Material Vendors } \
\hline \text { F. } & \text { Social Security Administration } \
\hline G . & \text { Health Insurance Provider } \
\hline H . & \text { Managerial Accountant } \
\hline
\end{array}$

Accepted Answer

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Question 13

Name and describe the four primary financial statements for a corporation.

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Question 14

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.)
A. Balance Sheet
B. Income Statement
C. Statement of Cash Flows
D. Retained Earnings Statement
 
$\begin{array} { | l | l | } 
\hline \# & \text { Account } \
\hline 1 . & \text { Dividends } \
\hline 2 . & \text { Revenues } \
\hline 3 . & \text { Supplies } \
\hline 4 . & \text { Land } \
\hline 5 . & \text { Accounts Payable } \
\hline 6 . & \text { Accounts Receivable } \
\hline 7 . & \text { Operating Activities } \
\hline 8 . & \text { Wages Expense } \
\hline 9 . & \text { Net Income } \
\hline 10 . & \text { Cash } \
\hline
\end{array}$

Accepted Answer

The answer of Match the following accounts to the financial...

Question 15

For each of the following companies, identify whether it is a service, merchandising, or manufacturing business.
 $\begin{array} { | l | l | } 
\hline \text { A. } & \text { Dillards } \
\hline B . & \text { Time Warner Cable } \
\hline C . & \text { General Motors } \
\hline D . & \text { Netflix } \
\hline E . & \text { Stanley Steemer } \
\hline F . & \text { Sony } \
\hline G . & \text { Best Buy } \
\hline H . & \text { Banana Republic } \
\hline \text { I. } & \text { H \& R Block } \
\hline
\end{array}$

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Question 16

What are the three sections of the statement of cash flows?

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Question 17

Identify which of the following accounts appear on a balance sheet.
A) Cash
B) Fees Eamed
C) Capital Stock
D) Wages Payable
E) Rent Expense
F) Prepaid Ackertising
G) Land

Accepted Answer

A) Cash is an asset account and appears on the balance sheet.
B) Fees Earned is a revenue account and appears on the income statement.
C) Capital Stock is an equity account and appears on the balance sheet.
D) Wages Payable is a liability account and appears on the balance sheet.
E) Rent Expense is an expense account and appears on the income statement.
F) Prepaid Advertising is an asset account and appears on the balance sheet.
G) Land is an asset account and appears on the balance sheet.

Question 18

For each of the following, determine the amount of net income or net loss for the year.

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Question 19

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014.

Accepted Answer

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Question 20

On March 1, 2014, Cook's Catering Company Capital Stock balance was $30,000 and the balance of Retained Earnings was $120,000. During March, dividends of $31,000 were declared and paid by the business. Assets, liabilities, revenues, and expenses at March 31, 2014, were as follows:
  Present, in good form, (a) an income statement for March, (b) a retained earnings statement for March, and (c) a balance sheet as of March 31.

Accepted Answer

The answer of On March 1, 2014, Cook's Catering Company...

Quiz 1: Introduction to Accounting and Business

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014. Prepare a retained earnings statement for the current year ended December 31, 2014.

There are four transactions that affect stockholders' equity. (a) What are the two types of transactions that increase stockholders' equity? (b) What are the two types of transactions that decrease stockholders' equity?

The total assets and total liabilities of Paul's Pools, a corporation, at the beginning and at the end of the current fiscal year are as follows:

Determine the missing amount for each of the following:

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014. Net income for 2014 is $45,625. Prepare an income statement for the current year ended December 31, 2014.

From the following list of accounts taken from Lamar's accounting records, identify those that would appear on the income statement.

Identify each of the following as an (1) increase in stockholders' equity, or a (2) decrease in stockholders' equity.

What information does the income statement give to business users?

Name and describe the four primary financial statements for a corporation.

What are the three sections of the statement of cash flows?

Identify which of the following accounts appear on a balance sheet.

For each of the following, determine the amount of net income or net loss for the year.

The assets and liabilities of S&P Day Spa at December 31, 2014 and expenses for the year are listed below. The retained earnings balance was $68,000 at January 1, 2014.