Individual Activity #1 Study Guide1)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 Equipment Wage Expense Insurance Expense Accounts Receivable Common Stock Unearned Revenue Cash 3) Identify each item as an “Asset”, “Liability” or “Equity” AccountCommon Stock Wages Payable Accounts Payable Inventory Land Notes Payable Prepaid Insurance Supplies Unearned Revenue Retained Earnings 4) Glacier Company: Iceberg Company:Assets: 160,000 Assets: _________ ?Liabilities : 60,000 Liabilities : 120,000Stockholders Equity:________ ? Beg RE: 50,000, NI: 65,000, DIV: 15,000, CS:25,0005) Calculate the missing amounts:Year BeginningbalanceNet income Dividends RetainedEarnings1 $0 $1,200 $5002 $500 $2000 (Note: Year 1 ending balance will be the year 2 beginning balance)6) Circle the current assets:Accounts Payable EquipmentInventory Common StockAccounts Receivable Retained EarningsCash Short term investmentUnearned Revenue SuppliesShort term Note Receivable Prepaid RentNote Payable Long term Note Receivable7) 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 35,000Advertising expense 36,000 Retained earnings (beginning)10,000Cash 75,000 Service Revenue 460,000Common Stock 98,000 Wages Payable 60,000Dividends 3,000 Equipment 118,000SuperBee CompanyStatement of Retained EarningsFor the year ended December 31, 2012 Current assets (CA)Current liabilities (CL)Long-term investments (LTI) Long-term liabilities (LTL)Property, plant, and equipment (PPE) Common stock (CS)Intangible assets (IA) Retained earnings (RE)8) Using the above classifications match the accounts impacted below:_____Salaries and wages payable _____Service revenue _____Accumulated depreciation_____Goodwill _____Depreciation expense_____Mortgage payable (due in 3 years)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 CreditImpact to the equation: Assets = Liabilities + Stockholders’ equityExample _ 3,000_ = _______ +___ 3,000___b. What is the journal entry a company records for paying $5,000 cash to stockholders for a dividend?Debit CreditImpact 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 CreditImpact 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 CreditImpact 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 CreditImpact 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 CreditImpact 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 BalanceLong Term Investment ___________ _____________Maintenance Expense ___________ _____________Accounts Payable ___________ _____________Accounts Receivable ___________ _____________Unearned Revenue ___________ _____________Sales Revenue ___________ _____________Supplies ___________ _____________Accumulated Depreciation ___________ _____________Common Stock ___________