Individual Activity 1 Study Guide 1 Match the characteristics below with Sole Proprietor Partnership or Corporation there can be more than 1 match a Easier to transfer ownership b Easier to raise funds c More owner control d Tax advantages e No personal legal liability 2 Identify whether each item would appear on the balance sheet BS or the income statement IS Land Wage Expense Accounts Receivable Unearned Revenue Equipment Insurance Expense Common Stock Cash 3 Identify each item as an Asset Liability or Equity Account Common Stock Accounts Payable Land Prepaid Insurance Unearned Revenue Wages Payable Inventory Notes Payable Supplies Retained Earnings 4 Glacier Company Assets 160 000 Liabilities 60 000 Stockholders Equity CS 25 000 Iceberg Company Assets Liabilities 120 000 Beg RE 50 000 NI 65 000 DIV 15 000 5 Calculate the missing amounts Year Beginning balance 0 Net income Dividends Retained Earnings 1 1 200 500 2 500 2000 Note Year 1 ending balance will be the year 2 beginning balance 6 Circle the current assets Accounts Payable Inventory Accounts Receivable Cash Unearned Revenue Short term Note Receivable Equipment Common Stock Retained Earnings Short term investment Supplies Prepaid Rent Note Payable Long term Note Receivable 7 Use the following information for SuperBee Company to prepare a statement of retained earnings for 2012 you will not use all accounts Accounts receivable 38 000 Rent Expense 35 000 Advertising expense 36 000 Retained earnings 10 000 beginning Cash 75 000 Service Revenue 460 00 0 Common Stock 98 000 Wages Payable 60 000 Dividends 3 000 Equipment 118 00 0 SuperBee Company Statement of Retained Earnings For the year ended December 31 2012 Current assets CA Long term investments LTI Property plant and equipment PPE Intangible assets IA 8 Using the above classifications match the accounts Salaries and wages payable Service revenue Accumulated depreciation Goodwill Depreciation expense Mortgage payable due in 3 years Current liabilities CL Long term liabilities LTL Common stock CS Retained earnings RE impacted below 9 Do the following journal entries a What is the journal entry a company records for payment of office expense for 3 000 cash Debit Credit Impact to the equation Assets Liabilities Stockholders equity Example 3 000 3 000 b What is the journal entry a company records for paying 5 000 cash to stockholders for a dividend Debit Credit Impact to the equation Assets Liabilities Stockholders equity c What is the journal entry a company records when it provides 2 000 of services for a customer on account i e the customer promises to pay in the future Debit Credit Impact to the equation Assets Liabilities Stockholders equity d What is the journal entry a company records for receiving 5 000 cash in advance for services which will be performed and completed next month Debit Credit Impact to the equation Assets Liabilities Stockholders equity e What is the journal entry when a company records repair work for 1 500 that was purchased on account Debit Credit Impact to the equation Assets Liabilities Stockholders equity f What is the journal entry a company records when paying 6 000 for this month s rent Debit Credit Impact to the equation Assets Liabilities Stockholders equity 10 Identify on which financial statement the following accounts are found and note normal balance choose among Income Statement Balance Sheet and Statement of Retained Earnings Financial Stmt Normal Balance Long Term Investment Maintenance Expense Accounts Payable Accounts Receivable Unearned Revenue Sales Revenue Supplies Accumulated Depreciation Common Stock