ACCT 200 Lecture 5Outline of Last Lecture I. ControlsII. Some remindersIII. Ch.2 homeworkOutline of Current Lecture (A review of Chapter 2 homework)I. Problem E2-6II. Problem E2-7III. Problem E 2-17IV. Problem E2-19V. Problem E2-20Current LectureI. Problem E 2-6a. No effect (increase cash, increase liabilities)b. No effect (decrease cash, decrease liabilities)c. Increase (increase cash, increase revenues)d. No effect (increase equipment asset, decrease cash asset)e. Decrease (decrease cash, increase dividends)f. Decrease (decrease cash, increase expense)g. Decrease (decrease cash, increase expense)h. Increasei. Increase (decrease cash, increase expense)j. Decrease (decrease cash, increase expense)II. Problem E2-7a. Increase assets, increase stockholders’ equityb. Decrease assets, decrease owners’ equityc. Increase assets, increase liabilitiesd. Increase assets, owners’ equityThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.e. Increase assets (land), decrease assets (cash)III. Income Statement (Problem E2-17)a. Interest expense (2000)b. Misc. expense (3000)c. Rent expense (5000)d. Salary expense (75000)e. Commissions 145000f. Utility expense (15000)g. Total Expense (100000)h. Net Income 45000IV. RE Statement (Problem 2-18)a. Beginning RE 0b. + net income 45000c. available RE 45000d. – dividends (10000)e. ending RE 35000V. Balance Sheet (Problem E2-19)a. Assetsi. Cash 53000ii. Land 42000iii. Total 95000b. Liabilitiesi. Notes payable 35000c. Owners Equityi. Capital stock 25000ii. RE 35000d. Total Liability and Owners Equity 95000VI. Statement of Cash Flows (Problem E2-20)a. Operating cash 45000b. Investing (42000)c. Financing 50000d. Ending cash
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